CITIC, Carlyle Reveal $2B+ Deal For China’s Golden Arches

McDonald's

CITIC Group and The Carlyle Group have announced a $2.08 billion purchase price for their previously reported acquisition of a portfolio of McDonald’s restaurants in China and Hong Kong. The bidding for the business was one of the more hotly contested (and longest running) takeover sagas of 2016, with other major players like KKR and Bain Capital reportedly engaging in talks before Carlyle and CITIC emerged as the winning bidders.

Digging a bit deeper into the deal, CITIC will own a 52% stake in the new partnership and Carlyle a 28% stake, with McDonald’s retaining a 20% interest. The deal allows CITIC and Carlyle to act as the master franchisee for McDonald’s businesses in mainland China and Hong Kong for 20 years. The firms intend to add 1,500 restaurants in the area during the next five years.

Article by PitchBook

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