FAT Brands has announced that it will acquire the Arizona-based restaurant chain for $20m from Wingtime LLC, a subsidiary of Cybeck Capital Partners LLC. This will be FAT Brands’ third chicken wing brand. The transaction will be completed with cash from the issuance of new notes from the company’s securitization facilities, and is expected to close in mid-December 2021.
“With the chicken wing sector growing in popularity throughout the pandemic, we knew that we wanted to continue developing our portfolio further into this category by bringing in a brand that would complement our existing wing concepts,” said Andy Wiederhorn, CEO of FAT Brands.
“Native Grill & Wings has been on our radar for some time given its ability to remain nimble and deliver strong system-wide sales growth over the past year. We’re pleased to build off the success established by Dan Chaon, Native brand CEO, and Cybeck Capital Partners, LLC, and we look forward to expanding Native Grill & Wings’ presence into new markets.”
After this acquisition is complete, FAT Brands will have over 2,300 franchised and corporate-owned stores around the world with a combined annual system-wide sales of approximately $2.3bn. The addition of the chicken wing concept, including the new stores due to open and under development, is expected to increase the company’s post-COVID normalized EBITDA by approximately $3m in 2022. This marks FAT Brands’ fourth acquisition of the year, including Fazoli’s in November and Twin Peaks in September.
“The Native Grill & Wings system is poised for a breakout to the next level, and FAT Brands has the resources and experience that can take it there. We are pleased to pass the baton to FAT Brands for the benefit of the system,” said Joe O’Hara, managing partner of Cybeck Capital Partners LLC.
“I’ve known the FAT Brands team for quite a while. The franchising experience and operational synergies that they bring to the table can maximize the potential of the Native Grill & Wings brand and our franchisees,” said Dan Chaon, CEO of Native Grill & Wings.
