Another Acquisition. Yesterday, FAT Brands announced it had entered into an agreement to purchase Twin Peaks, a chain of sports lodges known for scratch-made food and signature 29° draft beers. Twin Peaks expands FAT Brands market presence into sports and polished casual dining.Terms of the Deal. FAT Brands is paying $300 million for the acquisition including $250 million of cash and $50 million of the Company's Series B preferred stock. The cash portion will be funded through an expansion of the whole business securitization. The transaction is expected to close by the end of September 2021.Who Is Twin Peaks? Twin Peaks describes itself as "the ultimate sports lodge featuring made-from-scratch food and the coldest beer in the business surrounded by scenic views and the latest in high-definition TVs." The firm operates 82 restaurants across 25 states, plus six more opening by year-end 2021, and 18 target for development in the next 18 months. In 2020, Twin Peaks won the Franchise Times ZOR Award as the number 1 Sports Bar.Financial Impact. The purchase of Twin Peaks is expected to bring FAT Brands’ systemwide sales from approximately $1.4 billion to over $1.8 billion across more than 2,100 franchised and corporate-owned stores around the world. The addition of Twin Peaks, including the new stores due to open and under development, is expected to increase the Company’s post-COVID normalized EBITDA by approximately $25 to $30 million or about $90 million in total.Management Call. FAT Brands will host a conference call and webcast to discuss the acquisition on September 2nd, at 8:30 AM ET. Dial-in is (877) 705-6003, passcode 13722849. We will provide additional commentary following the call. Read More >>