Collins Food’s wholly-owned Dutch subsidiary (Collins Foods Netherlands Operations) has entered into a share purchase agreement to acquire eight KFC restaurants in the Netherlands from R. Sambo Holding.
The purchase price, which will be funded from Collins Foods’ existing debt facilities, is structured with an initial payment of €8 million (A$12.33 million) and an additional €4.6 million (A$7.1 million) tied to the restaurants’ EBITDA during the next two years.
Collins Foods MD & CEO Drew O’Malley said the acquisition is another “step forward” for the business’ European growth strategy.
“The eight restaurants we are acquiring in the Netherlands add another quality network of restaurants to our portfolio, as well as enhance our people capability as we continue to grow and increase our operational scale in the Netherlands,” he said.
The deal is subject to the satisfaction of various conditions, including obtaining all relevant government permits and the franchisor’s consent to the purchase. If prerequisites are fulfilled, the business will be fully acquired by May.
Once completed, Collins Foods’ KFC Netherlands store count will reach 56 restaurants, accounting for 64 percent of the brand’s network there.