FAT BRANDS CLOSES MAJOR ACQUISITION AND $350M ASSOCIATED FINANCING IN LESS THAN A MONTH AFTER ANNOUNCEMENT

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FAT BRANDS CLOSES MAJOR ACQUISITION AND $350M ASSOCIATED FINANCING IN LESS THAN A MONTH AFTER ANNOUNCEMENT

We have been reporting on FAT Brands’ (FAT) progress, and its emergence as an increasingly substantial multi-branded restaurant franchisor, since January ’21, and our previous reports can be accessed by way of the SEARCH function on this website. This short update is mostly to report that their recently announced acquisition of Global Franchise Group (GLG) and the associated $350M financing has been completed in what must be record time.

On June 28th, the Company announced the planned acquisition of Global Franchise Group (GLG), which triples the number of systemwide units in FAT’s portfolio to more than 2,000, increases the number of brands from nine to fourteen, and increases the potential EBITDA by approximately 67%. Since the number of common shares to be issued is only about 20% of the common shares to be outstanding post-merger, the GLG acquisition is substantially accretive to EPS and EBITDA/share.

On July 6th, the 8-K filing reported on the finalized definitive Purchase Agreement, and the indication that the $350M in new debt would be completed on or about 7/22/21.

On July 22nd the acquisition of GLG was completed, and the completion of the $350M financing was announced this morning, July 27th.

This important acquisition was therefore completed in less than 30 days from announcement to completion, including a major financing.

To management’s credit.

Roger Lipton