The International Food Company (BMI) announced on Wednesday (26) that Kentucky Foods Chile will pay $ 35 million to the company, in an agreement that expects to establish a joint venture to accelerate the expansion of the KFC fast food network in Brazil.
The process includes the separation of IMC assets related to the KFC brand of the company’s new structure, where the Chilean group will deter 58.3 % of the network’s operation in the country, while IMC will have the rest.
KFC in Brazil is estimated at $ 60 million – higher than the market value of $ 54.56 million, whose wallet includes its own commercial brands and privileges such as a hut and roasted chicken pizza, among others, along with KFC.
According to IMC CEO, Alexander Santoro, a portion of the amount will be paid when the process is closed, scheduled in the third quarter, and the rest within two years, with resources “mostly” to pay debts.
“With this resource, we have reduced debts and improved the capital structure,” said Reuters.
He said: “Today, a relevant part of Capex is an investment in Kentucky Fried Chicken (network),” noting that such a transaction will also allow a greater focus on other group brands.
Santoro calculates “moderate Ebitda (profit before benefits, taxes, depreciation and extinguishing) from IMC with division,” maximum 10 % “. In the case of revenue, taking into account its own stores, the impact of about $ 400 million is estimated.
The Executive Authority stated that the agreement includes some options for the future, to increase participation or sell another part, “but nothing in the short term.”
expansion
The joint project will be exclusive to the Brazilian market on the operation of the US -controlled brand by Yum! Santooro explained that the brands, in contrast to the current BMI agreement, although all the country’s chain stores today are linked to the company.
Kentucky Fried Chicken has been present in Brazil since 2006, where it has been managed by the BMI since 2019. The brands have a deadline until 2032. Currently, the brand includes 230 stores in Brazil.
In the advertising statement, Kentucky Foods Chile, which runs about 550 KFC stores in Latin America, indicated that they are confident of joining the Brazilian market.
raucous! Trademarks assessed that the agreement opens a new possibility of growth in the country.
IMC CEO has stated that the process has the ability to open the value of the KFC network in Brazil, noting that an experience of an expertise in the brand, a dedicated structure, and the benefits of the suppliers chain, among other things.
“We are really able to do this … and we will be able to accelerate growth and improve work margins.”
Most of the entrepreneurs fear the economic scenario in 2025
