$500m sale of Australian fast food chain
The Red Rooster, Oporto and Chicken Treat franchises have been bought by Asian private equity group PAG Asia Capital.
PAG Asia Capital is reported to have paid up to $500 million for chicken franchisor Craveable Brands, which operates 580 stores across its Red Rooster, Oporto and Chicken Treat brands, according to a media report. The acquisition will add to PAG’s existing Australian franchise investment in The Cheesecake Shop, which it acquired for a reported amount of $100 million in 2016.
Craveable's management team will remain in place and Chief Executive Mr Brett Houldin said PAG would bring a wealth of experience and international connections.
“The transaction will begin a new and exciting chapter for us that will see us further grow Craveable from the solid platform already established," he said.
Archer Capital managing partner Peter Gold said the sale was a good result for the business despite a failed attempt at an initial public offering two years ago.
"It's a good outcome for the brands and the franchisees in terms of having a financial sponsor who has a new medium-term plan to grow the business, whether that is expansion internationally or to grow locally," he said.
New owner PAG is expected to drive growth in Asia, expanding from an existing network of stores in Singapore, Sri Lanka and New Zealand.