FAT Brands (FAT) announced plans to acquire Hurricane Grill & Wings for $12.5 million this morning.
Established in 1995, Hurricane Grill & Wings offers jumbo fresh wings paired with over 35 signature sauces and rubs, with a diverse menu. Hurricane operates more than 60 locations across the U.S.
FAT (Fresh. Authentic. Tasty.) Brands completed the acquisition of Homestyle Dining LLC, the parent company to the Ponderosa Steakhouse and Bonanza Steakhouse brands for $10.5 million last month.
This buying spree follows the company's recent Regulation A+ IPO one month ago. The company raised $24 million selling 2 million shares at $12/share.
The company also owns Fatburger, Buffalo’s Cafe and Buffalo’s Express. In total, they company has 300 locations open and 300 under development in 32 countries.
Pro forma for the acquisition and expected synergies from the combined companies, the Company expects its annualized revenue to exceed $17 million and annualized adjusted cash earnings to exceed $11 million, or $1.10 per common share based on 10 million shares outstanding. The combined company's franchisees will operate ~350 restaurants around the globe, with system-wide sales exceeding $360 million.
"Based on our expected free cash flow in 2018, we expect to pay an annualized dividend of $0.48 per common share starting in 2018, subject to the declaration and approval by the board of directors, which represents an implied yield of approximately 5% based on the current share price."