The owner of Dick’s Wings, which is already buying Tilted Kilt, has made another acquisition in the four-unit Fat Patty’s.
Arc Group on Tuesday said it has completed its $12.3 million acquisition of Fat Patty’s, which operates casual-dining restaurants in West Virginia and Kentucky that serve a broad menu of sandwiches, burgers and dinners.
“This acquisition is consistent with our strategy of building a highly scalable and profitable organization,” Seenu Kasturi, president and CFO of Arc Group and also its largest shareholder, said in a statement. “Fat Patty’s is a very successful franchise and is the perfect addition to our portfolio of leading restaurant brands.”
He said that the plan is to grow the business in existing markets, “and we believe we can expand the brand through the addition of new franchises in other states.”
The deal continues Jacksonville, Fla.-based Arc’s push to make a dent in the sports-dining business, coming as the chain is in the process of buying Tilted Kilt. The deals should greatly increase Arc's size and reach, in addition to its brands. Dick’s Wings operates 15 locations, Tilted Kilt 47.
Arc generated just $4.4 million in revenue and $340,000 in net income in 2017. Tilted Kilt generated $14 million in revenue. Fat Patty’s generated $11 million in revenue.
All of the brands have a certain focus on sports. The Fat Patty’s locations has a full bar and several large, flat-screen televisions. Tilted Kilt is part of a generation of breastaurants that cater to a sports-viewing customer base.
Dick’s Wings, which offers a selection of chicken wings and other items, also has flat-screen televisions in addition to children’s areas with video games and other entertainment.