FAT Brands Forays Into Barbecue Business, Scoops Up Smokey Bones Barbecue Chain

FAT Brands Inc FAT disclosed the acquisition of Smokey Bones Bar & Fire Grill restaurant chain from Sun Capital Partners, Inc.'s affiliate for $30 million. 

With the acquisition, the company forays into the barbecue business and expands its portfolio of polished dining chains, including Twin Peaks. 

Related: Fat Brands Eyes IPO For Twin Peaks Business: Report

The buyout is expected to boost annual adjusted EBITDA by approximately $10 million and obtain 61 new corporate locations under FAT Brands. 

"As we have spent the year focusing on digesting past acquisitions, we've also been amplifying the explosive growth in our polished dining vertical," said Andy Wiederhorn, Chairman and Founder of FAT Brands. "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. We look forward to generating impressive results, similar to our Johnny Rockets integration, which we also acquired from an affiliate of Sun Capital Partners."

As of June 25, FAT's cash balance was $71.9 million. 

Price Action: FAT shares closed at $7.02 on Monday.