Collins Foods has bought nine KFC restaurants in the Netherlands taking its share of the market’s franchises to more than 50 per cent, or 44 stores in total.
The deal follows the listed Australian company’s signing this month of a corporate franchise agreement with Yum! Brands, streamlining the Netherlands’ franchisee structure and giving it access to additional trade zones. The initial term is five years.
Collins acquired the new outlets via a $16 million share purchase agreement with the second largest franchisee in the region. The acquisition price was based on pre-Covid revenue of $25 million and EBITDA of $2.8 million and the deal is expected to be settled in December.
The nine restaurants acquired would not count towards its previously stated target of opening a net 130 new KFC restaurants in the Netherlands within 10 years.
Collins Foods CEO Drew O’Malley said the deal provides further scale for the business in the country and supports the rollout of new restaurants by streamlining the Netherlands’ franchisee structure and enabling access to additional development trade zones for Collins Foods.
“Today’s acquisition marks another exciting step forward for Collins Foods’ European growth strategy. The restaurants we are acquiring are from one of Netherlands’ top KFC operators. It provides us with an opportunity to bring an additional quality network of restaurants into our European business and adds further capability to our team and increased scale to our operations in the Netherlands,” he said.
“The acquisition of these nine restaurants increases our presence to 44 KFC restaurants in the Netherlands and going forward, facilitates further growth opportunities.”