Famous Brands buys UK burger chain for R2.1bn | Fin24
 
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Famous Brands buys UK burger chain for R2.1bn

Sep 01 2016 10:27

(Famous Brands)

Company Data

FAMOUS BRANDS LIMITED [JSE:FBR]

Last traded 24
Change -2
% Change -6
Cumulative volume 331421
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Fast food group Famous Brands [JSE:FBR] bought Britain's Gourmet Burger Kitchen (GBK) for R2.1bn, saving nearly a fifth on the price due to the weaker pound in the wake of Brexit, the firm said on Thursday.

The group, which also owns casual dining chain Wimpy UK and fast food assets such as Steers and Debonairs, plans to double the upmarket burger chain's 75 British stores in the next five years.

"Brexit has had some upside for us," Famous Brands group adviser for M&A Kevin Hedderwick told Reuters.

The firm started negotiations with GBK earlier this year and saved as much as R700m on the acquisition, according to Hedderwick, as the pound slumped following Britain's decision to leave the European Union and South Africa's rand firmed after relatively peaceful local elections.

Hedderwick sees GBK opening 10 to 15 new restaurants in Britain per year and plans to expand further in Ireland and take the gourmet burger concept to South Africa.

"The fast-casual premium environment is pretty recession proof," he said.

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