US-based City Capital Ventures (CCV) has acquired Canadian quick-service restaurant (QSR) franchisee Redberry Group.
The acquisition was supported by Redberry Group’s franchisor partners Burger King and Pizza Hut.
Redberry Group’s portfolio features 111 Burger King restaurants, which make up nearly 40% of the fast-food company’s total outlets in the Ontario, Quebec and Manitoba areas.
Its 23 Pizza Hut outlets are located in the province of Alberta.
CCV co-founder and managing partner Dan Kipp said: “We are thrilled to be acquiring two iconic restaurant brands in the highly attractive Canadian QSR market.
“The Burger King brand is underpenetrated in Canada relative to other QSR burger brands, and we see a compelling opportunity for expansion.
“Similarly, Redberry has a strong Pizza Hut presence in Alberta with a base of nicely profitable units.”
Pursuant to the transaction, Dan Kipp will join Redberry’s Board of Directors. The former chairman of Caribou Coffee Gary Graves will be appointed as chairman of Redberry, while the search for a prospective CEO of the company is currently underway.
Graves said: “We are highly impressed with the current management team and excited for them to be our partners in accelerating Redberry’s growth in Canada and delivering superior operating results.
“Redberry’s experienced and effective management team, which has been in place since 2014 and combined brings over 100 years of relevant QSR industry experience, provides the foundation for our organic growth.”