FAT Brands announced on Thursday the completion of its pending acquisition of Fazoli’s from funds under management by Sentinel Capital Partners for $130 million. The acquisition marks FAT Brands’ debut into the Italian quick-service dining category.
With over 200 stores currently open and a development pipeline of 100 units over the next several years, the purchase of Fazoli’s will increase FAT Brands’ footprint to approximately 2,300 franchised and corporate-owned stores around the world, bringing 2022 expected systemwide sales at FAT Brands to more than $2.2 billion.
“This has been a year of tremendous growth for FAT Brands. While we have focused on expanding our footprint and scale via strategic acquisitions, we also continue to show strong same-store sales systemwide,” says FAT Brands CEO Andy Wiederhorn. “Fazoli’s has had an outstanding year when it comes to brand performance with three quarters of record-setting sales. We are eager to integrate Fazoli’s into our portfolio, working with CEO Carl Howard and team to build upon this great success going into 2022.”
“Fazoli’s has had a historic year. Our store traffic continues to soar, and our domestic development pipeline couldn’t be any stronger,” adds Carl Howard, CEO of Fazoli’s. “Now a part of FAT Brands, we will look to tap into their scale and global presence to bring our delectable Italian cuisine to new markets internationally to one day take the title of largest, premium [quick-service restaurant] Italian chain worldwide.”
For FAT Brands, Duff & Phelps Securities, LLC served as financial advisor and Foley & Lardner LLP acted as legal counsel. For Sentinel Capital Partners, North Point Mergers and Acquisitions Inc. served as financial advisor and Winthrop & Weinstine, P.A. acted as legal counsel.