FAT Brands Inc. has agreed to acquire the Johnny Rockets restaurant chain from an affiliate of private equity firm Sun Capital Partners,Inc. for approximately $25 million.
The deal will be funded through cash on hand and proceeds generated from the company’s securitization facility. The purchase is expected to be completed in September. With the acquisition of Johnny Rockets, FAT Brands will have more than 700 franchised and company owned restaurants around the globe with annual system-wide sales exceeding $700 million.
Johnny Rockets was founded in 1986 with its first location on Melrose Avenue in Los Angeles. Known for its 1950s diner style décor, the chain serves up freshly-made, classic burgers and ice cream shakes. Johnny Rockets currently has over 325 locations across the U.S. and internationally, including 9 company owned locations.
Andy Wiederhorn, President and CEO of FAT Brands, said, “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."