Fatburger’s owner is beefing up.
The burger chain’s Beverly Hills-based parent, Fat Brands Inc., has agreed to acquire Plano, Texas-based restaurant franchiser Homestyle Dining for $10.6 million, Fat Brands said last week.
To finance the acquisition, the company filed paperwork Sept. 7 with the Securities and Exchange Commission announcing that it would sell 2 million shares at $12 a share with the intention to raise $24 million in its initial public offering. The company will utilize Regulation A+ equity crowdfunding, which allows nonaccredited investors to purchase company stock in the offering. It will list on the Nasdaq under the ticker “FAT.”
In addition to the $10.6 million Fat Brands is shelling out for Homestyle, the company said in its SEC filing that it would pay $9.5 million to Homestyle’s ownership entity, Fog Cutter Capital Group Inc. of Beverly Hills.
Fat Brands, led by Chief Executive Andy Wiederhorn, already owns the Buffalo Café and Buffalo Express restaurant brands. Homestyle’s brands include Ponderosa Steakhouse and Bonanza Steakhouse.
– Caroline Anderson
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