ECP to buy Burger King franchise in South Africa

Emerging Capital Partners has agreed to buy Burger King South Africa along with its supplier of meat patties from a JSE-listed investment company, Grand Parade Investments. Of the total consideration of approximately $48.2 million being paid for both assets, approximately $46.5 million is being spent to acquire Grand Parade Investments’ 95.36% stake in Burger King’s franchise network of more than 90 restaurants while $1.7 million is being spent to acquire Grand Foods Meat Plant, a burger production facility located in South Africa’s Western Cape.

The deal is being transacted on behalf of Emerging Capital Partners’ fourth fund which closed with $640 million in commitments at the end of 2018 and which is paying 8x the business’s forward EBITDA. In the year ending June 2019, Burger King reported it had served 18.6 million customers, a jump of 3 million diners from the same period the year before.

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