Yum! Brands has announced that its KFC division has signed a definitive agreement to acquire 218 restaurants from EG Group, the largest KFC franchise in the UK&I.
Financial details of the deal have not been disclosed by the companies.
EG Group co-founders and co-CEOs Zuber and Mohsin Issa stated: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.
“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK.
“This is the latest transaction in our significant deleveraging this year – to put in place a sustainable capital structure. I would like to thank all the colleagues who have helped deliver such exceptional brand standards and customer service over recent years, including during the Covid-19 period.”
The transaction will be funded using Yum!’s cash flows. The deal is expected to close by the end of the first half of 2024.
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EG’s entire KFC UK&I business with 7,800 team members will come under KFC UK&I management.
The deal will help KFC to expedite its growth strategy in the large and growing UK&I chicken market.
KFC Division CEO Sabir Sami stated: “The KFC business is a powerhouse for Yum! globally and the UK and Ireland is one of our strongest markets.
“Over the past five years, we’ve secured our leadership position within the UK and Ireland chicken market, opening 200 new restaurants, and we’re now close to being a £2bn business in the UK, thanks to our extremely talented local management team.
“We’re pleased to add these restaurants to our equity portfolio, in a market where we are well placed to drive strong growth while also making further digital and strategic progress.”
In November 2022, KFC UK&I partnered with Uber Direct to facilitate fast order deliveries to its customers.