RTTNews | Jun 28, 2021 11:54AM EDT

11:54 Monday, June 28, 2021 (RTTNews.com) - Shares of FAT Brands Inc. (FAT) are gaining over 8% on Monday morning after the company said it inked a deal to buy Global Franchise Group from Serruya Private Equity Inc and Lion Capital LLP for $442.5 million in cash and stock.

FAT is currently trading at $14.43, up $1.11 or 8.33%, on the Nasdaq.

Global Franchise Group franchises and operates a portfolio of five quick service restaurant concepts including, Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker.

The cash portion of the purchase price will be funded from the issuance of a new series of notes and cash on hand. The company will also issue to the sellers $25 million in common stock and $67.5 million in Series B cumulative preferred stock.

The deal is expected to close by the end of July 2021.

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