BurgerFi has reached an agreement to acquire Anthony’s Coal Fired Pizza & Wings, according to a press release that came out earlier this morning.
BurgerFi currently has two MoCo locations, Downtown Silver Spring and Pike & Rose, with a third on the way in Gaithersburg at Rio Lakefront.
Anthony’s Coal Fired Pizza & Wings opened its first MoCo location in January 2020, less than two months before the pandemic shut down indoor dining at restaurants two months later.
The full press release can be seen below:
BurgerFi International Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” ), the owner of one of the nation’s fastest-growing premium fast-casual concepts through the BurgerFi brand, announced today that it has entered into a definitive agreement to acquire Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) from L Catterton for approximately $161.3 million, comprised of $33.6 million in common stock, $53.0 million in new junior non-convertible preferred equity and the assumption of existing debt, all subject to closing adjustments (see “Transaction Details” below). The shares of common stock issued as consideration will be determined based on the 30 day volume weighted average price of BFI common stock through the day prior to closing, up to a cap of $14.25 per share and a minimum of $10.25 per share. At the closing of the transaction, L Catterton, the largest global consumer-focused private equity firm, will become one of BurgerFi’s largest shareholders. BurgerFi expects the transaction will be accretive to EPS to common shareholders and EBITDA in 2022.
BurgerFi was named Fast Casual’s #1 Brand of the year for 2021 in the “Top 100 Movers and Shakers” list, and the top fast casual better burger chain in USA Today’s “10 Best Readers’ Choice Awards” for 2021. With the acquisition of Anthony’s, BurgerFi will have 177 systemwide restaurant locations across the country through its two premium casual dining brands, with 61 Anthony’s locations and 116 BurgerFi locations. “This is our first acquisition in building a premium multibrand platform. We are well positioned to continue the growth of our existing BurgerFi brand and leverage our scale to unlock value from strategic acquisitions. Our focus on premium fast-casual brands allows us to share expertise, capabilities and best practices across the board,” said Ophir Sternberg, Executive Chairman of BurgerFi.
Anthony’s, founded in 2002 and headquartered in Fort Lauderdale, FL, is a leading operator of casual dining pizza restaurants with a loyal fan base and, like BurgerFi, a high concentration of its locations in the state of Florida. Anthony’s concept is centered around a 900-degree coal fired oven, and its streamlined menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Ian Baines, Chief Executive Officer of Anthony’s, said “Anthony’s Coal Fired Pizza & Wings will be a fantastic addition to the BurgerFi family. It is a well-positioned, differentiated pizza and wing concept with industry-leading average unit volumes and strong profitability. BurgerFi is a very dynamic growth brand and I am honored to work with their great team as we continue to pursue and expand on our growth strategy together.”
“Both Anthony’s Coal Fired Pizza & Wings and BurgerFi bring high-quality ingredients, impressive customer loyalty and affinity, and strong management teams to the table,” said Andrew Taub, Managing Partner at L Catterton, who will be joining the board of directors of BurgerFi following the completion of the transaction. “We are delighted to continue our support of Anthony’s as they join one of the country’s most innovative players in the restaurant space. Together, these brands will establish the beginning of a restaurant platform well-positioned for growth and success.”
Ophir Sternberg will lead both the BurgerFi and Anthony’s brands in his continuing role of Executive Chairman of BurgerFi and Mike Rabinovitch will continue as BurgerFi Chief Financial Officer. At the closing of the transaction, Ian Baines will become the Chief Executive Officer of BurgerFi while Julio Ramirez will remain Chief Executive Officer and President of the BurgerFi brand and Patrick Renna will become President of the Anthony’s brand. The transaction is expected to close in the fourth quarter of 2021, subject to certain customary closing conditions.
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