Restaurant franchising company FAT Brands Inc. said it has closed on its $12.5 million acquisition of Hurricane Grill & Wings, bringing FAT Brands’ franchise count to more than 325 units globally.
West Palm Beach, Fla.-based Hurricane Grill & Wings brought about 60 U.S. units to FAT Brands through the sale, according to FAT. The purchase adds another chicken wings-based menu to FAT Brands’ portfolio, in addition to those of Buffalo’s Cafe and Buffalo's Express.
“We are excited to complete our first acquisition since our IPO, and we remain committed to asset-light growth through a combination of accretive acquisitions of franchise brands, and organic new store growth of existing brands,” Andy Wiederhorn, president and chief executive of FAT Brands, said in a statement.
FAT Brands recently entered into a $16 million senior credit facility to help close the Hurricane Grill & Wings deal. It plans to use the proceeds to pay down existing debt and for future acquisitions, the company agreed. The company last year acquired Plano, Texas-based Ponderosa Steakhouse and Bonanza Steakhouse for $10.5 million, adding 120 locations.
FAT Brands formed in 2017 as a subsidiary of Beverly Hills-based Fog Cutter Capital Group Inc. and went public last fall.
The company ranked No. 8 on the Business Journal’s 2018 List of Franchisers after growing its franchises 124 percent to 356 locations in 2017 from 159 in 2016.