Fat Brands, the owner of the Fatburger and Ponderosa chains, on Thursday said it has completed its $12.5 million acquisition of Hurricane Grill & Wings.
The deal includes $8 million in cash, funded through a $16 million loan that Fat Brands also announced Thursday, along with $4.5 million in preferred stock.
Hurricane Grill has more than 50 locations in the U.S. and specializes in jumbo wings prepared with more than 35 sauces.
The Hurricane deal was originally announced last November.
With the acquisition, Fat Brands now operates a half-dozen chains, including Buffalo’s Cafe, Buffalo’s Express and Bonanza, that together have 325 locations. This is the second major acquisition since Fat Brands went public late last year in a Regulation A+ IPO, also known as a mini IPO.
The completion of the deal “will allow our management to expand Hurricane’s footprint in both existing markets and new international markets,” Fat Brands CEO Andy Wiederhorn said in a statement.
The sale “will enable our team to leverage Fat Brands’ proven expertise and robust infrastructure to realize our brand potential and grow our presence around the world,” Hurricane CEO John Metz said in a statement.
Brooksy Smith, who served as chief brand officer for Hurricane parent company Hurricane AMT and was president of the chain’s fast-casual Hurricane BTW brand, said in a statement later Thursday that his two-year tenure with the company is over with the sale.
Smith helped launch the BTW brand, which now has three locations. Smith will return to his role as president of Texas-based consulting firm Big Fish Brands.
“When I joined the Hurricane AMT team two years ago the company was in the midst of closing restaurants faster than new locations were opening,” Smith said. “This year we expect to see positive growth for the chain both in terms of total restaurants and systemwide revenue.”
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