Thai Beverage Plc and its subsidiaries, announced on Tuesday that its subsidiary, QSR of Asia Co Ltd or QSA, has entered into an asset sale and purchase agreement with Yum Restaurants International (Thailand) Co Ltd to acquire more than 240 existing and a number of developing KFC stores in Thailand with a value about Bt11.3 billion.
The agreement has additional amount of consideration for the developing KFC stores, which will be determined at closing.
This will enable ThaiBev to expand further into the food business in the quick service restaurant segment.
The group's senior vice president of Food Business (Thailand) Nongnuch Buranasetkul said that the acquisition of the KFC stores represents more than an opportunity to enlarge ThaiBev’s food business.
KFC’s extensive network in Thailand will give the Group direct access to multiple customer touch points across the country, enabling us to understand trends and stay at the forefront of the industry. This is essential for sustainable growth over the long term.
With QSA’s restaurant management expertise, we are well positioned to accelerate KFC’s further expansion in Thailand, she said.
"We look forward to partnering with Yum Restaurants International (Thailand) Co., Ltd. to achieve this goal and will focus not only on enhancing operations, but also human capital development,” she said.
The KFC brand has been the number one quick service restaurant brand in Thailand measured by brand share and number of outlets. KFC has been in Thailand for more than 30 years, with the fastest pace of store growth in the last five years.
The consideration is subject to price adjustment mechanisms as set out in the asset sale and purchase agreement, and depends on the exact number of the existing and developing KFC stores to be acquired at closing.
The acquisition is expected to be completed by the end of December this year.