Billionaire Fertitta to Add Restaurants, Aquariums to SPAC Deal

(Bloomberg) -- Billionaire Tilman Fertitta's deal to take much of his Fertitta Entertainment Inc. empire public through a merger with a special purpose acquisition company has been expanded to include Catch Hospitality Group, Galveston Island Historic Pleasure Pier and Mastro's Restaurants, according to people with knowledge of the matter.

The transaction with Fast Acquisition Corp. will also add Aquarium restaurants and steakhouse chain Vic & Anthony's, said the people. The combined entity will be valued at about $8.6 billion, including debt, up from $6.6 billion in the original deal announced in February, the people said.

The enhancements were fueled in part by a recovery in spending at restaurant and entertainment-related venues amid the U.S. vaccine rollout, one of the people said. Fertitta -- chairman, president and chief executive officer of the combined company -- will own about 72% of the merged company, up from 60%, the people said.

The company expects revenue for the quarter through June 30 of about $920 million and adjusted earnings before interest, taxes, depreciation and amortization of around $270 million, the people said. No additional debt is being incurred as a result of the expanded transaction, they said.

A Fertitta spokesperson didn't immediately respond to a request for comment. A representative for Fast declined to comment.

The company owns Landry's as well as Golden Nugget casinos in locations such as Las Vegas and Atlantic City, New Jersey, and operates restaurant brands such as Del Frisco's, Joe's Crab Shack and Dos Caminos. It also holds a controlling stake in Golden Nugget Online Gaming Inc., which has seen its shares tumble about 35% this year.

Shares of Fast, led by Sandy Beall and Doug Jacob, have gained 15% this year. The SPAC, affiliated with investment platform &vest, previously said it had received commitments from investors to contribute about $1.2 billion in a private investment in public equity.