Collins Foods (ASX:CKF) has announced a significant expansion in Europe, acquiring 26 KFC restaurants in the Netherlands from Restaurant Brands International. Collins Foods is a KFC and Taco Bell franchisee in Australia and Europe, committed to strategic growth and operational excellence. The company’s latest acquisition, announced on the ASX on June 7, 2024, underscores its dedication to building a substantial European presence and leveraging its expertise in restaurant management. The acquired restaurants consist of 25 corporate stores and one sub-franchised location, all located in the Netherlands.
The transaction is valued at approximately $115.3 million (EUR 71.8 million) and is subject to customary completion adjustments. Collins Foods anticipates funding the acquisition through a combination of existing cash reserves and new debt facilities. This strategic move is expected to be immediately accretive to Collins Foods’ earnings per share, demonstrating the financial benefits of expanding its operational footprint. The company believes that the Netherlands presents a compelling market opportunity, given its strong consumer base and positive economic outlook.
Collins Foods plans to integrate the new restaurants into its existing European operations, focusing on maintaining high standards of quality and customer service. The acquired stores are anticipated to benefit from Collins Foods’ established operational expertise and economies of scale. This acquisition aligns with the company’s long-term growth strategy, solidifying its position as a leading operator of KFC restaurants in Europe. The strategic acquisition is an important step in the company’s European growth strategy, and the new sites are expected to enhance Collins Foods’ performance in the region.
The company aims to continue exploring opportunities for further expansion and growth in the European market. Collins Foods’ management team is confident that this transaction will create significant value for shareholders and enhance the company’s competitive position.
