The parent of Fatburger, Ponderosa and Bonanza has agreed to acquire the 325-unit Johnny Rockets retro malt shop concept for $25 million from the private-equity firm Sun Capital Partners.
All but nine of the Johnny Rockets restaurants are franchised. The full-service chain specializes in burgers and milk shakes served in a 1950s-style environment.
Fat Brands said it will fund the deal through a combination of cash on hand and funds available through its securitization facility. The company said it expects the deal to close in September.
With the purchase, Fat Brands’ holdings will expand to about 700 restaurants generating sales of $700 million, the company said. Those holdings include Hurricane Grill & Wings, Buffalo’s Cafe/Express, Elevation Burger and Yalla Mediterranean.
“We couldn’t be more pleased to add another true staple in our home city to our portfolio,” said Andy Wiederhorn, CEO of Los Angeles-based Fat Brands. “This acquisition is a transformative event for Fat Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”