Rahul Bhatia-controlled IGE Group in talks to buy Burger King India for Rs 1,400 crore
BusinessToday.In July 11, 2019
Rahul Bhatia-controlled InterGlobe group is in advanced talks with private equity firm Everstone Capital to acquire the popular Burger King franchise in India. The deal is likely to be finalised for about Rs 1,400 crore. The franchise rights for Burger King are held by the Singapore-based firm's holding company for its restaurant investments in the region, QSR Asia Pte.
According to a report in The Economic Times, two US-based buyout firms as well as a local private equity fund who were in talks to buy the business have backed out for their inability to match the expected price. While discussion with Bhatia have furthered to the final stages, it remains to be seen if this deal materialises.
The fast food chain operates around 140 outlets in India and has made Rs 375 crore worth of sales in FY18. From the consolidated level, it might be making losses but it is making operating profit at the store level, as mentioned in the daily.
Bhatia is currently in the news over the dispute with his partner Rakesh Gangwal over the IndiGo airline flagship business. Bhatia has a forayed into multiple business segments including hospitality, hotel business, IT services, travel booking and luxury goods. His hotel business along with the Accor group operates the Ibis, Novotel and Pullman brands.
Everstone Capital invested in setting up Burger King in the country five years ago. It also runs some of the chain's restaurant in Indonesia, which is not part of the current deal in talks. The firm also has rights to restaurant brands such as Coffee Bean & Tea Leaf, Noodle Bar, Copper Chimney and Bombay Blue as well as Domino's Pizza in Indonesia.