Festive birds on the menu for everyone

So most of us by now have entered the festive spirit or may well be on the verge of getting into the mood after today’s so called Mad Friday. Even our Private Equity friends appear to have entered into the Christmas spirit this week with CVC Capital announcing that it is teaming up with Johor Corp to bid for KFC Holdings Malaysia and QSR Brands.

Ok, I appreciate the chicken / turkey link is tenuous but this deal follows hot on the heels of Carlyle Group’s acquisition, for an undisclosed price, of 42% in Saudi Arabia’s Alamar Foods on Wednesday. So clearly PE firms are stocking up on their food shopping in good time for Christmas.
KFC Holdings Malaysia and QSR Brands between them operate over 650 chicken stores and 260 Pizza Hut restaurants across Malaysia, Singapore, Brunei, Cambodia and India, respectively, whereas Alamar Foods operates the Domino’s Pizza and Wendy’s franchises across the Middle East and North Africa.

The fast food retail sector has seen deal value in 2011 significantly down on 2010, which was the best year recorded as a result of 3G Capital’s $4bn acquisition of Burger King Holdings in the US. However, the numbers of deals in 2011 have already surpassed those in 2010. So despite the global economy being unclear for 2012, PE firms are confident that the fast food sector remains a sector with continued growth, clearly illustrated by the activity this year

Anyone for KFC on Christmas day?

Filed under: food, MENA, PE, Asia