The parent of Tilted Kilt and Dick’s Wings & Grill has acquired 24-unit WingHouse Bar & Grill for $18 million from Soaring Wings LLC, a holding of Third Lake Capital.
The buyer, Arc Group, indicated in announcing the deal that it plans to operate WingHouse and Dick’s as separate brands.
Arc, which is also the parent of four-unit Fat Patty’s, said it will pay $12 million in cash and $6 million in stock installments over three years. It noted that the deal will make Third Lake Capital, a firm that manages the money of wealthy families, a major shareholder of the company.
“We look forward to working with ARC Group to build upon the growth and success of WingHouse and, through our equity investment in ARC Group, share in the upside potential of this rapidly growing company,” said Third Lake CEO Ken Jones.
Arc is led by Richard Akam, a onetime CEO of Hooters of America and an alumnus of chains such as Twin Peaks and First Watch.
The WingHouse acquisition nearly doubles the size of Arc’s wings holdings. Dick’s operates four restaurants and three concession stands and has franchised 19 additional units.
Fat Patty’s, a burger concept, has four branches.
Arc acquired Tilted Kilt last year through a two-step process that began with the breastaurant chain’s acquisition by Fred Alexander, one of Arc’s director. The plan called for Alexander to then sell Tilted Kilt to Arc once financing was arranged.