Franchising

FAT Brands acquires Smokey Bones for $30M

Ribs are served at Smokey Bones Bar. Provided by FAT Brands

September 26, 2023

FAT Brands Inc., which owns 17 restaurant brands including Twin Peaks and Fatburger, acquired the Smokey Bones Bar & Fire Grill restaurant chain from an affiliate of Sun Capital Partners Inc. The acquisition, which marks the company's first foray into barbecue, will increase annual adjusted EBITDA by approximately $10 million and bring 61 corporate locations under the FAT umbrella. The $30 million transaction was funded from the company's existing securitization facilities.

"We continue to be selective and opportunistic in our acquisition strategy, targeting brands that are both scalable and synergistic with our existing platform," Rob Rosen, co-CEO of FAT Brands, said in a company press release. "We are pleased to add another polished dining brand, which will provide more options for our sales team to offer our franchise partners to further their new unit development."

FAT Brands founder and chairman Andy Wiederhorn said the company has spent the year amplifying growth in its polished dining vertical, which is why it was interested in the Florida-based chain.

"Having a strong player in the barbecue space provides another arrow in our quiver for the polished dining segment and opens the door for additional growth strategies for our sister brands," he said in the release. "We look forward to generating impressive results, similar to our Johnny Rockets integration, which we also acquired from an affiliate of Sun Capital Partners (in 2020)."

"We are excited to become a part of the FAT Brands family and benefit from their purchasing power and scale," Hal Lawlor, president of Smokey Bones, said in the release. "Additionally, we see great opportunity in being a part of a leading global franchising company to further our growth with new franchised locations."

Kroll Investment Banking acted as the exclusive sell-side M&A advisor to Smokey Bones and Sun Capital Partners on the transaction.

Los Angeles-based FAT Brands owns Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo's Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses.