WELLINGTON, New Zealand--Restaurant Brands New Zealand Limited (RBD.NZ) said Monday that it will buy 10 KFC sites in Australia from Yum! for 27 million Australian dollars (US$21.4 million).
Restaurant brands said in a regulatory filing that the deal would generate annual sales of around A$29 million and earnings before interest, tax, deductions and amortization of A$4.5 million.
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The purchase, made through its subsidiary QSR Pty Limited, will be funded with debt and is expected to settle in stages between September and November 2017. The deal is subject to the usual conditions associated with this sort of transaction, including landlord approvals for assignment of leases, Restaurant Brands said.
Restaurant Brands' Chairman Ted van Arkel said the purchase is another step towards building a significant presence in the Australian market. QSR is the largest KFC franchisee in New South Wales state with store numbers expected to rise to over 60 by the end of the year, after it first bought 42 stores in April 2016.
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(END) Dow Jones Newswires
August 27, 2017 20:40 ET (00:40 GMT)