FAT Brands Inc. has announced that it has agreed to acquire the Fazoli restaurant chain for $ 130 million. The acquisition brings Italy’s largest premium fast-service chain in the United States to the FAT Brands portfolio.
FAT Brands (Fresh. Authentic. Tasty.), Based in Los Angeles, is a leading global franchise company that strategically acquires, markets and develops fast and casual food concepts around the world. The company currently owns 15 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Bualo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchise more than 2,100 units worldwide.
The Fazoli transaction, funded by cash from the issuance of new banknotes from the company’s securitization facilities, is expected to be finalized by mid-December.
Founded in Lexington in 1988, Fazoli’s owns and operates nearly 220 restaurants in 28 states. After years of decline, Fazoli’s unit sales and profits have grown steadily over the past few years as the company has improved the quality of food and reinvested in its system.
The addition of existing Fazoli locations, as well as a development pipeline of 100 new stores scheduled to open or under development over the next few years, is expected to increase the FAT brand’s post-COVID normalized EBITDA by approximately 14 , $ 5 million to $ 15 million in 2022, company officials said.
“Fazoli’s has seen good growth, especially over the past year. They continue to exceed sales expectations in all areas, ”said Andy Wiederhorn, CEO of FAT Brands. “We’ve been eyeing this category for some time; However, we were waiting for the right brand – a high growth brand, with almost all restaurants having drive-thru access, in addition to the synergies we will achieve by adding Fazoli’s to our brand portfolio.
“We have had an exceptional year and could not be happier to join forces with FAT Brands, a company that has the same growth mindset as we at Fazoli’s,” said Carl Howard, CEO of Fazoli’s . “From co-branding and virtual kitchens to menu development opportunities, we see great value in being a part of FAT Brands. “