Global franchising company FAT Brands has signed an agreement to acquire restaurant chain Johnny Rockets from private equity company Sun Capital Partners’ affiliate.
With the $25m acquisition, the company aims to expand its burger portfolio with the all-American restaurant chain.
The company will use cash on hand and proceeds generated from the company’s securitisation facility to fund the deal.
By acquiring Johnny Rockets, the company will have more than 700 franchised and company-owned restaurants globally and have annual system-wide sales of over $700m.
FAT Brands president and CEO Andy Wiederhorn said: “FAT Brands is delighted to carry the torch from the affiliate of Sun Capital Partners, a global private equity leader with deep investment and operational experience, and run hard.
“Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we could not be more pleased to add another true staple in our home city to our portfolio.”
Founded in 1986, Johnny Rockets’ first location was opened in Melrose Avenue, Los Angeles, California, US.
With more than 325 locations across the US and worldwide, including nine company-owned locations, the chain serves freshly made, classic burgers and hand-spun real ice cream shakes.
Wiederhorn added: “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 acquisition of Johnny Rockets is scheduled for completion next month.