Fast food master franchisee Collins Foods is adding 11 KFC restaurants in Germany to its portfolio.
This acquisition (through Collins' subsidairy) is what the fast food operator calls a ‘strategic expansion'.
The restaurants are being acquired directly from the franchisor, Kentucky Fried Chicken (Great Britain) and German Branch (KFC Germany).
Graham Maxwell, MD and CEO, Collins Food said “We are excited about the purchase of these 11 restaurants and the opportunity to be part of the dynamic growth plans for KFC in Germany.
“Having successfully run, acquired, integrated and grown KFC restaurants in Australia, this acquisition provides a unique new market entry opportunity for Collins Foods that will be immediately EPC accretive and add an additional growth channel to our business.”
According to Inside Retail, Collins Foods will pay 12.7 million euros for the acquisition, which it will fund entirely from the company’s existing debt facility. It expects to complete the deal by December of this year.
“This acquisition creates an attractive new growth platform for Collins Foods that adds value for shareholders and is in line with our strategy of pursuing growth opportunities,” said Maxwell.
KFC Germany’s CEO, Insa Klasing, said the company is in the next phase of its growth strategy and plans to double “our number of restaurants from 140 to 300 in the next few years.”