BurgerFi buying Anthony's Coal Fired Pizza

Florida-based BurgerFi International Inc. has entered into a definitive agreement to acquire Anthony's Coal Fired Pizza & Wings from L Catterton for approximately $161.3 million. 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, according to a company press release.

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 multi-brand platform," Ophir Sternberg, executive chairman of BurgerFi, said in the release. "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."

BurgerFi was named Fast Casual's top brand on the 2021 Top 100 Movers and Shakers list.

Anthony's, founded in 2002 and headquartered in Fort Lauderdale, is a casual dining pizza concept centered around a 900-degree, coal-fired oven. It also serves chicken wings, homemade meatballs and a variety of handcrafted sandwiches and salads.

"Anthony's Coal Fired Pizza & Wings will be a fantastic addition to the BurgerFi family," Anthony's CEO Ian Baines said in the release. "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."

Sternberg will lead both the BurgerFi and Anthony's brands in his continuing role of executive chairman of BurgerFi International, and Mike Rabinovitch will continue as BurgerFi CFO. Julio Ramirez will remain brand CEO and president of BurgerFi, while Baines will become the CEO of the combined company. and Patrick Renna will become president of Anthony's. The acquisition is slated to close in the fourth quarter of 2021.

Anthony's primarily operates in suburban strip centers with an average square footage per unit of 3,200. With a pre-Covid average unit sales volume of approximately $2.3 million and a restaurant-level operating margin of 19%, the restaurants generated sales per square foot of nearly $700, which is top-tier in the industry. Anthony's grew its revenue at a compound annual growth rate of 12% from 2011 to 2019, according to the release.

In November 2020, Anthony's launched "The Roasted Wing," a virtual concept that features roasted chicken wings and garlic knots available through Anthony's delivery partners. In 2021, Anthony's launched its fast casual format, which operates in a smaller footprint to enable broader real estate opportunities and an even more streamlined operating model, according to the release.