Global franchise company FAT Brands has agreed to acquire Arizona-based restaurant chain Native Grill & Wings for $ 20 million in cash.
FAT Brands will acquire the restaurant chain from Wingtime, a subsidiary of Cybeck Capital Partners. The deal represents FAT Brands’ fourth acquisition in 2021.
Based in Chandler, Arizona, USA, Native Grill & Wings serves over 20 award-winning flavors of wings. It has 23 franchised outlets in the states of Arizona, Illinois and Texas.
Native Grill & Wings CEO Dan Chaon said, âI’ve known the FAT Brands team for some time. The franchise experience and the operational synergies they bring can maximize the potential of the Native Grill & Wings brand and our franchisees.
Fat Brands will finance the transaction by issuing new banknotes from its securitization facilities.
The deal is expected to be concluded by the middle of next month.
Upon completion of the transaction, FAT Brands will have more than 2,300 franchised and company-owned stores worldwide, with annual system-wide sales of nearly $ 2.3 billion.
FAT Brands CEO Andy Wiederhorn said: âWith the growing popularity of the chicken wing industry throughout the pandemic, we knew we wanted to continue to grow our portfolio in this category by bringing a brand that would complement our existing wing concepts.
âNative Grill & Wings has been on our radar for some time given its ability to remain nimble and drive strong system-wide sales growth over the past year. ”
Going forward, FAT Brands plans to expand Native Grill & Wings’ presence into new markets.
Earlier this month, FAT Brands agreed to acquire Fazoli’s for $ 130 million from funds managed by Sentinel Capital Partners.
Fazoli’s has approximately 220 restaurants in 28 states, making it the largest Italian chain of quick service restaurants (QSRs) in the United States.