Restaurant franchising company FAT Brands has agreed to acquire the franchised chain Nestlé Toll House Café by Chip from Crest Foods for an undisclosed sum.
With nearly 85 franchised cafés across the US, Nestlé Toll House Café by Chip sells lunches, cookies, drinks and ice cream treats.
FAT Brands said that it will rebrand Nestlé Toll House Café by Chip stores as Great American Cookies.
The deal is expected to increase FAT Brands’ manufacturing facility in Atlanta, Georgia, as well as drive the company’s supply chain efficiencies and create cost savings.
Additionally, the transaction is expected to increase FAT Brands’ presence in the dessert category.
Upon completion of the transaction, the newly acquired company will join the existing Great American Cookies and Marble Slab Creamery brands.
FAT Brands CEO Andy Wiederhorn said: “In 2022, we are focused heavily on our deep organic growth pipeline, but we saw great value in making this accretive acquisition.
“These stores will fold seamlessly into our Quick-Service Division and provide us with the opportunity to increase the capacity of our manufacturing business, a key growth objective.
“To date, acquisitions have been a strong growth vehicle for FAT Brands, and we anticipate the combination of our production and distribution facility and scale to increase the profitability of the franchisees that are joining us in this acquisition.”
In another US development, Wendy’s largest stakeholder, Nelson Peltz, is reportedly weighing options to acquire the entire stake of the fast-food restaurant company.
Peltz is said to have first invested in the company two decades ago.