- Restaurant Brands New Zealand (RBD) has purchased 70 stores in Southern California from KFC U.S. franchisee for approximately $106 million
- The purchase includes 59 KFC stores and 11 combined KFC and Taco Bell stores, along with a head office facility
- Settlement is expected to be completed by March 2020
- On market close, Restaurant Brands remains steady and is trading at $8.80 per share
Restaurant Brands New Zealand (RBD) has purchased 70 stores in Southern California from KFC U.S. franchisee for around $106 million (US$73 million).
The purchase includes 59 KFC stores and 11 combined KFC and Taco Bell stores, together with a head office facility.
The deal will need approval from Yum! Brands and the landlord. Yum! operates Taco Bell, KFC, Pizza Hut, and WingStreet.
Restaurant Brands will be offering employment to all current 1100 part-time and 500 full-time staff.
“This acquisition brings with it some very experienced and committed employees who we welcome to the Restaurant Brands family and we look forward to building the business further with them in what is a market with considerable potential for future growth,” CEO Russel Creedy said.
The company will purchase the stores for $106 million (US$73 million), plus capital expenditure reimbursements for recent store refurbishment and customary working capital adjustments.
The business generates an annual turnover of approximately $137 million (US$95 million).
“This acquisition provides RBD with immediate critical mass and a capable and stable organisation in California from which we can further expand,” Russel added.
Chairman José Parés says this deal will be the next step for the company’s growth strategy.
“We are delighted to take the next step in Restaurant Brands’ growth strategy,” he told the market.
“This acquisition provides us with a solid beachhead in the US with significant opportunities for further development,” he said.
The settlement is expected to be completed by March 2020.
At market close, Restaurant Brands remains steady and is trading at $8.80 per share.