The parent company of the Fatburger burger chain has added the Ponderosa and Bonanza budget-steakhouse brands to its fold for $10.5 million.
The acquisition came hours after the buyer, FAT Brands Inc., filed for a simplified public offering to raise $24 million. It has apparently not yet been given a go-ahead by regulators for the stock issue.
The absorption of Ponderosa and Bonanza, one-time rivals that now coexist under privately owned Homestyle Dining, swells FAT Brands’ portfolio to five restaurant holdings. The others include Buffalo’s Cafe, a wing and beers concept, and a fast-casual version, Buffalo's Express.
FAT Brands said that it will add another venture to the mix by developing a new fast-casual version of Ponderosa Steakhouse. It also indicated that it plans to acquire other restaurant brands.
Prior to the purchase, FAT Brands’ various concepts extended to about 200 locations. Fatburger accounts for the majority of the units, followed by Buffalo's Express, with 72 stores attached to a Fatburger, and 25 Buffalo's Cafes, according to FAT Brands’ website.
Ponderosa and Bonanza consist of about 110 units collectively, including franchises.
FAT Brands’ current brands are also franchised.
The company plans to sell shares via Regulation A, a provision of the Jumpstart Our Business Startups Act of 2012. The measure, adopted as a way of rejuvenating the economy after the Great Recession, allows small to medium businesses to sell from $3 million to $50 million of stock directly to the public, a process that’s been christened as a mini IPO, or initial public offering.
A similar offer was issued earlier this year by Bobby's Burger Palace.