McDonald's (MCD) Sells Majority Stake in China Business to CITIC and The Carlyle Group
CITIC Limited, CITIC Capital Holding, The Carlyle Group (NASDAQ: CG) and McDonald's Corporation (NYSE: MCD) announced the formation of a partnership and company that will act as the master franchisee responsible for McDonald's businesses in mainland China and Hong Kong for a term of 20 years.
The total consideration payable by the new company to acquire McDonald's mainland China and Hong Kong business is up to US$2.08 billion (approximately HK$16.14 billion). The consideration will be settled by cash and by new shares in the company issued to McDonald's. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald's will have interests of 28% and 20%, respectively.
The partnership will use its combined expertise and resources to accelerate growth in McDonald's business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.
McDonald's CEO Steve Easterbrook said, "China and Hong Kong represent an enormous growth opportunity for McDonald's. This new partnership will combine one of the world's most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success. By working together, we will unlock even faster growth and be closer to the customers and communities we serve as McDonald's works to be the leading Quick Service Restaurant across the Chinese mainland and Hong Kong."
http://www.streetinsider.com/Corpor...+to+CITIC+and+The+Carlyle+Group/12405068.html
CITIC Limited, CITIC Capital Holding, The Carlyle Group (NASDAQ: CG) and McDonald's Corporation (NYSE: MCD) announced the formation of a partnership and company that will act as the master franchisee responsible for McDonald's businesses in mainland China and Hong Kong for a term of 20 years.
The total consideration payable by the new company to acquire McDonald's mainland China and Hong Kong business is up to US$2.08 billion (approximately HK$16.14 billion). The consideration will be settled by cash and by new shares in the company issued to McDonald's. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald's will have interests of 28% and 20%, respectively.
The partnership will use its combined expertise and resources to accelerate growth in McDonald's business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.
McDonald's CEO Steve Easterbrook said, "China and Hong Kong represent an enormous growth opportunity for McDonald's. This new partnership will combine one of the world's most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success. By working together, we will unlock even faster growth and be closer to the customers and communities we serve as McDonald's works to be the leading Quick Service Restaurant across the Chinese mainland and Hong Kong."
http://www.streetinsider.com/Corpor...+to+CITIC+and+The+Carlyle+Group/12405068.html
