FAT Brands To Buy Twin Peaks Restaurant Chain For $300 Mln

(RTTNews) - FAT Brands Inc. (FAT), a restaurant franchising company, announced Wednesday that it has agreed to acquire Twin Peaks restaurant chain for $300 million.

Twin Peaks, a chain of sports lodges known for scratch-made food and signature 29° draft beers, will be brought from Garnett Station Partners.

The transaction is expected to close by the end of September 2021.

The acquisition will be funded with the proceeds of $250 million of new securitization notes and the issuance to the sellers of shares of Series B preferred stock.

FAT Brands expects the acquisition of Twin Peaks to expand its portfolio from quick-service, fast casual and casual dining concepts into the fast-growing segment of polished casual dining.

The purchase of Twin Peaks is expected to bring FAT Brands' systemwide sales from approximately $1.4 billion to over $1.8 billion across more than 2,100 franchised and corporate-owned stores around the world.

The addition of Twin Peaks, including the new stores due to open and under development, would increase FAT Brands' post-COVID normalized EBITDA by approximately $25 to $30 million.