Body fat Makes, the owner of Fatburger, has reached a deal to get Johnny Rockets for about $twenty five million from its private equity agency owner Sun Capital Associates.
“This acquisition is a transformative occasion for Body fat Makes in conditions of scale and brand consciousness,” Body fat Makes chief government officer Andy Wiederhorn said in a statement. “We see a good deal of synergy with Johnny Rockets and our present-day cafe principles and we are eager to consider the brand to new heights.”
Body fat Makes is funding the deal with hard cash on hand and proceeds from its securitization facility. When the deal closes, it will have additional than seven-hundred eating places throughout the world with yearly program-vast income exceeding $seven-hundred million.
The announcement of the deal arrives as several fast-food items eating places have observed a sharp boost in desire amid COVID-19 lockdown orders.
Body fat Makes described a loss of $four.twenty five million or 36 cents per share for the 2nd quarter, down from a loss of $508,000 a calendar year in the past. The corporation said its revenue fell to $3.one million for the 2nd quarter, down from $5.9 million a calendar year in the past, expressing the decline, “overwhelmingly reflects a decline in royalty revenue associated to the impression of COVID-19.”
Body fat Makes acquired the fast-casual franchise Elevation Burger very last June for $ten million.
“Similar to Fatburger, Johnny Rockets acquired its begin in Los Angeles, and we could not be additional delighted to increase an additional real staple in our home metropolis to our portfolio,” Wiederhorn said.
Wiederhorn said Body fat Makes ideas to increase plant-centered goods and vegan milkshakes to modernize Johnny Rockets’ menu.
Body fat Makes shares jumped 236% in premarket buying and selling Thursday. They ended up up additional than one hundred fifteen% at midday.
The deal is anticipated to close in September.
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