COLLINS FOODS GOBBLES UP MORE AUSSIE KFC STORES

COLLINS FOODS GOBBLES UP MORE AUSSIE KFC STORES
COLLINS Foods Limited (ASX: CKF) has purchased 28 KFC restaurants from Yum! Brands Inc for $110.2 million, adding further to its growing portfolio of 223 KFC stores nationwide.

The sale was funded by a fully underwritten entitlement offer of $44.1 million, as well as new debt facilities totalling $69.3 million.

Of the 28 KFC restaurants, 14 are located in Tasmania, eight in South Australia, and six in Western Australia, with two of the six in WA currently under construction.

Collins Food managing director and CEO Graham Maxwell says these acquisitions will allow the company to expand in new territory.

"This acquisition provides an exciting opportunity for us to continue to grow in Western Australia and develop new growth platforms in Tasmania and South Australia," says Maxwell.

"The acquisition portfolio is attractive and the transaction is consistent with Collins Foods' strategy to drive operational growth while delivering strong value for shareholders."

"The acquisition further reinforces the confidence that Yum! has in Collins Foods as a strong operator of KFC restaurants in Australia and globally."

Alongside the acquisitions, Collins has also announced that Drew O'Malley will be the new Chief Operating Officer of the company from September 2017.

O'Malley has previously held roles in fast food, notably as Chief Operating Officer at AmRest where he was Brand President for KFC.

At AmRest, O'Malley was responsible for more than 500 European restaurants across four brands (KFC, Pizza Hut, Starbucks, and Burger King).

Earlier this year Collins Foods increased its European expansion through the purchase of 16 KFC restaurants in the Netherlands for $87.7 million from Yum!.

The deal included a development agreement with which set out a pipeline of 20 new Collins-owned KFC restaurants in the Netherlands by 2021.

In December 2016, Collins also purchased 11 German based KFC restaurant.

Never miss a story: Sign up to Business News Australia's free news updates

Follow us on Twitter, Facebook, LinkedIn and Instagram

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

How tech rebooted economics and platforms broke the invisible hand

How tech rebooted economics and platforms broke the invisible hand

Growing evidence and new research explain the evolution of economic...

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Reproductive care specialist Monash IVF Group (ASX: MVF) has e...

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

In the same way that Apple, Garmin and Fitbit have revolutionised h...

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Fortescue Metals Group (ASX: FMG) has announced a major restructure...