Collins Foods Ltd
(ASX:CKF), through its subsidiary CFE Investments, has signed a deal to acquire 16 KFC restaurants in the Netherlands.
The company paid €62.3 million to the vendors (which are subsidiaries of Yum! Brands Inc). This works out to be AU$87.7 million at today’s exchange rate.
Also, Collins signed a Development Agreement with a subsidiary of Yum! Brands – under which Collins will roll-out six new KFC restaurants in the Netherlands by December 2018, and at least 14 more by December 2021.
Collins Foods says the Netherlands is a highly attractive market which is under-penetrated by KFC, and this deal will increase the company’s footprint in Europe to 28 KFC restaurants in total.
This morning, Collins shares are trading flat at $5.88, which is down from its one-year high of $6.73.
