Australian restaurant operator Collins Foods has closed its previously announced acquisition of eight KFC outlets in Germany from JJ Restaurant.
First announced in March this year, the deal was valued at around €31.1m ($36.08m), plus working capital
At that time, KFC’s parent company Yum! Brands also gave conditional approval for the transaction. The acquired portfolio, which includes eight KFC restaurants in Bavaria centred around Munich, increases Collins Foods’ German network by approximately 50%.
The move is also aligned with the company’s previously stated intention to build Germany as its “second core growth pillar”. The Australian restaurant operator noted that the acquisition also opens up further development opportunities in Bavaria and will help it to scale across three key German states. In a statement, Collins Foods said: “The acquisition unlocks further development opportunities in Bavaria — an attractive and affluent market that includes Munich, one of Germany’s largest and wealthiest cities. “Germany remains an underpenetrated and attractive market for the KFC brand, offering significant long-term growth potential.” It added that the acquired outlets have higher margins than its existing German restaurants and are expected to boost its performance in the market.