Fast food restaurant company Yum China Holdings has agreed to purchase a controlling stake in Chinese-style casual dining franchise business Huang Ji Huang.
Established in 2004, Huang Ji Huang currently operates more than 640 restaurants through a franchise model in China and across the globe.
The company is headquartered in Beijing. Its brands include Huang Ji Huang simmer pot brand, and San Fen Bao Chinese fast food concept.
The acquisition is currently dependent on the satisfaction of closing conditions and receipt of regulatory approvals. Yum China expects to complete the transaction in early 2020.
Following the completion of the transaction, Yum China expects to achieve a stronger foothold and enhanced know-how in China’s dining market.
The acquisition is expected to create synergies for Yum China by combining its scale and system capabilities with Huang Ji Huang’s product research and development and brand management.
A Yum! Brands licensee, Yum China holds rights to quick-service restaurant brands KFC, Pizza Hut and Taco Bell in the country.
As at the end of June 2019, the company had over 8,700 restaurants operating in more than 1,300 cities. It also owns Little Sheep, East Dawning and COFFii & JOY concepts.
Last month, the restaurant franchisee reported total revenues of $2.12bn for the second quarter ending 30 June 2019.
In March this year, Yum China announced the expansion of its restaurant portfolio to 10,000 stores by 2021 as part of its growth strategy for this year.