Philippines restaurant chain operator Shakey’s Pizza Asia is buying the Peri-Peri Charcoal Chicken brand.
The firm filed details of the deal with Peri-Peri’s operator I-Foods at the Philippine Stock Exchange this week, although the transaction cost has not been released. A representative for the business said the price was not substantial relative to the firm’s market capitalisation, and that the acquisition will be financed by a combination of internally generated cash and debt, most likely to be completed by mid-year.
The deal is expected to affect Shakey’s bottom line this year, but boost profits in the long run.
Peri-Peri Charcoal Chicken operates 23 outlets in metropolitan Manila, 40 per cent of which are run under franchise agreements.
“The brand now has a strong following and recently gained even more traction,” said Shakey’s president and CEO Vicente Gregorio, “evident in its strong same-store sales growth last year amidst the more challenging macroeconomic environment, and the amount of interest in new stores from potential lessors and franchisees.”
“We are excited by the potential of Peri to scale,” added Shakey’s chairman Christopher Po. “We expect it to be an important future growth driver for our fast casual chain restaurant business.”
The firm also has plans to expand its core offering – US brand Shakey’s Pizza, for which the firm has perpetual rights in several broad territories, including most of Asia. It plans to open 20 new branches this year, which will see it operating 248 locations by next year.