Collins Foods set to expand Dutch footprint with store acquisitions
The move is expected to complement the company’s long-term plan in the region.
ASX-listed Collins Foods is set to acquire nine KFC restaurants in the Netherlands, which will effectively make its total footprint more than half the market.
One of its wholly owned Dutch subsidiaries, Collins Foods Netherlands Operations B.V., entered into a €10.25 million (approx. A$16 million) share purchase agreement with RDK Holding B.V. and MDK Holding B.V., the country’s second largest KFC franchisee.
The acquisition cost is subject to various adjustments to be made at completion, and will be funded from Collins Foods’ existing debt facilities, the operator said.
Once completed, this acquisition will increase the Collins Foods’s KFC footprint in the Netherlands to 44 restaurants, or 55% of the market.
The announcement follows Collins Foods’ signing of a corporate franchise agreement (CFA) with a subsidiary of Yum! Brands Inc. (Yum!) for KFC Netherlands, expected to streamline the Netherlands’ franchisee structure and enable access to additional development trade zones.
The nine restaurants to be acquired will not count towards the CFA’s target of up to 130 net new KFC restaurants over the next 10 years.