Everstone Plans Exit from Burger King Operator Restaurant Brands Asia

In a deal to be disclosed on January 20, private equity firm Everstone would sell its whole 11.26% ownership in Burger King's franchisee Restaurant Brands Asia in India and Indonesia. According to Refinitiv statistics, Everstone Capital's shareholding, through its investment vehicle QSR Asia Pte Ltd, is presently valued at $57 million. In Mumbai, Restaurant Brands Asia has a $437 million market capitalisation. As per the media reports, Restaurant Brands Asia will receive a new strategic investor as part of the agreement.

New Investors to Join Restaurant Brands Asia

The strategic investor in the transaction will be the family office of the founders of Ajanta Pharma, an Indian company that also operates other restaurants. According to estimates, the new investors may contribute up to 8 billion Indian rupees ($88 million) to the business.

The source stated that Ajanta was thinking about acquiring a controlling stake in the company when other shareholders sold out, though it was not immediately apparent what stake it would take. Last week, Restaurant Brands Asia informed Indian stock markets that it would convene a board meeting on January 20th to discuss and assess fund-raising.

India’s QSR Sector a New Dealmaking Battleground

Intense dealmaking is taking place in India's quick-service restaurant (QSR) industry. The most recent is the merger of Devyani International and Sapphire Foods India, which run the quick service restaurants KFC and Pizza Hut in India, to form the biggest single QSR organisation in the nation. The combination of Sapphire Foods and Devyani will take effect on April 1 and create a joint company that will run more than 3,000 outlets.

Wow Momo Foods, a QSR chain, raised INR 75 crore in new capital a few days ago under the direction of Singularity AMC founder and seasoned investor Madhusudan Kela. For roughly INR 770 crore, Vixar (previously Arpwood Partners) recently acquired a sizeable minority share in the domestic dessert and waffle brand The Belgian Waffle Co.

According to a November ET story, US-based sandwich manufacturer Subway's master franchise in India, run by Everstone Capital, is in talks with growth investor Playbook Partners for an INR 200–250 crore funding round. ChrysCapital previously purchased 85% of Theobroma. As investors flocked to India's QSR and broader consumer industry, US-based private equity firm L Catterton purchased a minority investment in Haldiram Snacks Food last month. Less than a year has passed since the largest local private equity consumer deal, in which Temasek of Singapore, IHC of the United Arab Emirates, and Alpha Wave Global of the United States together purchased a 10% stake in Haldiram's snacks business for a $10 billion valuation