Aussie master franchisee Collins Foods has snapped up 16 KFC outlets in the Netherlands.
The operator of KFC and Sizzler restaurants purchased the stores from subsidiaries of Yum! Brands Inc, one of which will govern the roll-out of more than 20 new Dutch KFC restaurants by 2021.
The acquisition and associated equity raising costs will be funded via a fully underwritten $54.5 million, reports Inside Retail.
Collins Foods also announced a revenue rise of 12.3 per cent to $247.2 million for the first-half, with underlying EBITDA up 5.4 per cent to $30.7 million.
The restaurants are situated in Amsterdam, the Hague, Almere and a some cities in the south of the Netherlands.
Graham Maxwell, MD and CEO of Collins Foods, said “This transaction immediately increases our footprint in Europe to 28 KFC restaurants, providing increased economies of scale.
“Equally as important, the transaction reinforces the strong confidence that Yum! has in Collins Foods as a strong operator of KFC restaurants both in Australia and in Europe.”
Collins Foods’ KFC European business will operate independently from its KFC Australian business with Graham Maxwell also sitting on the newly established board for Collins Foods Europe Ltd.
KFC-experienced Mark van ‘t Loo has been appointed CEO Europe and the European head office will lead the Netherlands and German operations and be supported by local support centres.