Global franchising company FAT Brands has agreed to acquire Arizona-based restaurant chain Native Grill & Wings for $20m in cash.
FAT Brands will buy the restaurant chain from Wingtime, a subsidiary of Cybeck Capital Partners. The deal represents FAT Brands’ fourth acquisition in 2021.
Based in Chandler, Arizona, US, Native Grill & Wings serves more than 20 award-winning wing flavours. It has 23 franchised outlets across the states of Arizona, Illinois and Texas.
Native Grill & Wings CEO Dan Chaon said: “I’ve known the FAT Brands team for quite a while. The franchising experience and operational synergies that they bring to the table can maximise the potential of the Native Grill & Wings brand and our franchisees.”
Fat Brands will fund the deal by issuing new notes from its securitisation facilities.
The deal is expected to close by the middle of next month.
Upon completion of the transaction, FAT Brands will have more than 2,300 franchised and corporate-owned stores across the globe, with annual system-wide sales of nearly $2.3bn.
FAT Brands CEO Andy Wiederhorn said: “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.
“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.”
In the future, FAT Brands plans to expand Native Grill & Wings’ presence into new markets.
Earlier this month, FAT Brands agreed to acquire Fazoli’s for $130m from funds managed by Sentinel Capital Partners.
Fazoli’s has around 220 restaurants across 28 states, making it the largest Italian quick-service restaurant (QSR) chain in the US.