FAT (Fresh. Authentic. Tasty.) Brands Inc. has announced that it has agreed to acquire Native Grill & Wings, an Arizona-based restaurant chain known for its cult-like following and 20 wing flavors that guests can order by the individual wing, for $20 million from Wingtime, LLC, a subsidiary of Cybeck Capital Partners, LLC. Marking FAT Brands’ third chicken wing concept, the acquisition of Native Grill & Wings will be funded with cash from the issuance of new notes from the Company’s securitization facilities and is expected to close in mid-December 2021.

With the acquisition of Native Grill & Wings, FAT Brands will have more than 2,300 franchised and corporate-owned stores around the world with a combined annual system-wide sales of approximately $2.3 billion. The addition of the chicken wing concept, including the new stores due to open and under development, is expected to increase the Company’s post-COVID normalized EBITDA by approximately $3 million in 2022. The Native Grill & Wings transaction follows FAT Brands’ planned acquisition of Fazoli’s announced in early November, and marks the Company’s fourth acquisition in 2021, including Global Franchise Group in July and Twin Peaks in October.

“With the chicken wing sector growing in popularity throughout the pandemic, we knew that we wanted to continue developing our portfolio further into this category by bringing in a brand that would complement our existing wing concepts,” said FAT Brands CEO Andy Wiederhorn. “Native Grill & Wings has been on our radar for some time given its ability to remain nimble and deliver strong system-wide sales growth over the past year. We’re pleased to build off the success established by Dan Chaon, Native brand CEO, and Cybeck Capital Partners, LLC, and we look forward to expanding Native Grill & Wings’ presence into new markets.”

“The Native Grill & Wings system is poised for a breakout to the next level, and FAT Brands has the resources and experience that can take it there. We are pleased to pass the baton to FAT Brands for the benefit of the system,” said Joe O’Hara, managing partner of Cybeck Capital Partners, LLC. Native Grill & Wings CEO Dan Chaon commented, “I’ve known the FAT Brands team for quite a while. The franchising experience and operational synergies that they bring to the table can maximize the potential of the Native Grill & Wings brand and our franchisees.”

For FAT Brands, Foley & Lardner LLP acted as legal counsel. For Wing Time, LLC, Taft Stettinius & Hollister LLP acted as legal counsel.

Source: FAT Brands