Fat Brands, the operator of Fatburger, has arrived at a deal to get Johnny Rockets for about $25 million from its private equity agency operator Sunshine Cash Companions.

“This acquisition is a transformative celebration for Fat Brands in terms of scale and model consciousness,” Fat Brands chief executive officer Andy Wiederhorn reported in a statement. “We see a ton of synergy with Johnny Rockets and our existing cafe ideas and we are keen to consider the model to new heights.”

Fat Brands is funding the deal with cash on hand and proceeds from its securitization facility. When the deal closes, it will have additional than 700 places to eat all over the world with annual system-huge sales exceeding $700 million.

The announcement of the deal arrives as several fast-meals places to eat have noticed a sharp raise in desire amid COVID-19 lockdown orders.

Fat Brands noted a reduction of $4.25 million or 36 cents for each share for the 2nd quarter, down from a reduction of $508,000 a year back. The organization reported its income fell to $3.one million for the 2nd quarter, down from $5.nine million a year back, declaring the decline, “overwhelmingly displays a decline in royalty income associated to the impression of COVID-19.”

Fat Brands obtained the fast-informal franchise Elevation Burger previous June for $ten million.

“Similar to Fatburger, Johnny Rockets obtained its start off in Los Angeles, and we could not be additional happy to incorporate a different correct staple in our house metropolis to our portfolio,” Wiederhorn reported.

Wiederhorn reported Fat Brands options to incorporate plant-centered goods and vegan milkshakes to modernize Johnny Rockets’ menu.

Fat Brands shares jumped 236{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} in premarket trading Thursday. They were being up additional than a hundred and fifteen{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} at midday.

The deal is anticipated to shut in September.

George Rose/Getty Photographs

fast meals, Fat Brands, Fatburger, Johnny Rockets