McDonald's Sells All Of Its Nordic Restaurants

31-Jan-2017 - USA

fast food giant McDonald's Corp. (MCD) has sold its Nordic operations to British private equity firm Terra Firma Capital Partners and its Chairman Guy Hands. Financial terms of the deal were not disclosed.

Terra Firma will become the master franchiser and also become the development licensee for the Nordic region. The deal is expected to close around the end of the first quarter of 2017.

McDonald's said it plans to transfer its ownership interest in McDonald's Norway, Finland, Denmark and Sweden, as well as grant a license to the development licensee to develop and operate the McDonald's restaurants in these markets. Terra Firma will provide the capital necessary to support and grow the business.

The deal involves approximately 435 restaurants in these four countries, of which more than 95 percent are owned by franchisees. McDonald's is the biggest fast-food operator in the region, but has been facing stiff competition from local hamburger chains.

Ian Borden, President, McDonald's Foundational Markets, said, "We look forward to welcoming Guy Hands as our strategic partner in the Nordics."

"This is an exciting opportunity to form a strong partnership with one of the world's leading global brands. I and my family look forward to working with the McDonald's teams in place across the region," said Guy Hands.

McDonald's noted that the deal was the result of a rigorous evaluation and selection process over the past year.

As part of its turnaround plan announced in May of 2015, McDonald's committed to re-franchising 4,000 restaurants by the end of 2018 with the long-term goal of becoming 95 percent franchised.

In September 2016, McDonald's said it agreed to sell a controlling stake in its mainland China and Hong Kong operations to a group of investors in a deal that would value the business at up to $2.08 billion. (dpa)

https://www.yumda.com/en/news/1150368/mcdonald-s-sells-all-of-its-nordic-restaurants.html