FAT Brands has grilled up plans to consume the Jonny Rockets restaurant chain from Sun Capital Partners in a deal worth USD 25.00 million.
The transaction will be funded through cash on hand and proceeds generated from the buyer’s securitisation facility.
Jonny Rockets was founded in 1986, opening its first location on the iconic Melrose Avenue in Los Angeles, California.
It is known for 1950s diner style décor, and the chain serves classic burgers and hand-spun ice cream milkshakes, with over 325 locations across the US and internationally.
FAT Brands believes the addition of Jonny Rockets will give the combined group over 700 franchised and company-owned restaurants around the world with annual system-wide sales exceeding USD 700.00 million.
Andy Widerhorn, chief executive of the buyer, said: “Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio.
“This acquisition is a transformative event for FAT Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”
FAT Brands develops fast casual dining restaurant concepts around the world, with eight labels under its belt, including Fatburger, Buffalo’s Café, Hurricane Grill & Wings, Yalla Mediterranean and Ponderosa.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 351 deals targeting restaurants and other eating places announced worldwide in 2020 to date.
In the largest of these, Lone Pine Capital has agreed to sell its 14.5 per cent stake in China’s Luckin Coffee in a deal worth USD 1.27 billion.
Other targets include Fast Food Holdings, Darden Restaurants, Habit Restaurants and Tele Pizza.
© Zephus Ltd