Excess fat Manufacturers, the operator of Fatburger, has attained a offer to get Johnny Rockets for about $25 million from its non-public equity firm operator Sunlight Money Partners.
“This acquisition is a transformative party for Excess fat Manufacturers in conditions of scale and brand name consciousness,” Excess fat Manufacturers chief govt officer Andy Wiederhorn stated in a statement. “We see a good deal of synergy with Johnny Rockets and our latest cafe ideas and we are keen to choose the brand name to new heights.”
Excess fat Manufacturers is funding the offer with cash on hand and proceeds from its securitization facility. When the offer closes, it will have extra than seven hundred restaurants globally with yearly method-vast sales exceeding $seven hundred million.
The announcement of the offer will come as a lot of fast-meals restaurants have found a sharp boost in demand amid COVID-19 lockdown orders.
Excess fat Manufacturers described a decline of $four.25 million or 36 cents for each share for the 2nd quarter, down from a decline of $508,000 a yr back. The company stated its revenue fell to $3.one million for the 2nd quarter, down from $5.9 million a yr back, declaring the drop, “overwhelmingly displays a drop in royalty revenue similar to the influence of COVID-19.”
Excess fat Manufacturers obtained the fast-informal franchise Elevation Burger past June for $ten million.
“Similar to Fatburger, Johnny Rockets obtained its start in Los Angeles, and we could not be extra delighted to insert yet another legitimate staple in our house metropolis to our portfolio,” Wiederhorn stated.
Wiederhorn stated Excess fat Manufacturers plans to insert plant-based mostly products and vegan milkshakes to modernize Johnny Rockets’ menu.
Excess fat Manufacturers shares jumped 236% in premarket buying and selling Thursday. They had been up extra than a hundred and fifteen% at midday.
The offer is envisioned to near in September.
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