AmRest sells KFC business in Russia for 100 million euros

AK&M 08 December 2022 10:30

AmRest Group has announced the conclusion of a purchase and sale agreement with Almira LLC on the sale of its KFC restaurant business in Russia. As a reward for the transaction, AmRest expects to receive at least 100 million euros. This is stated in the company's message.

The completion of the transaction is subject to approval by the antimonopoly authority of Russia, the consent of YUM! Brands Inc. and other regulatory bodies that may apply in Russia.

The final terms of the transaction, which depend on certain external factors, including the exchange rate, will be communicated if the transaction is closed.

According to AmRest estimates, after the recognition of the impairment of the Russian business in the consolidated financial statements as of June 30, 2022, the completion of the transaction will not require additional adjustments.

We will remind, earlier it became known that the FAS received from LLC "Smart Service Ltd" a petition for the acquisition of the Russian business YUM! Restaurants (KFC fast food restaurants).

Earlier it also became known that Yum! On October 24, 2022, Brands signed a contract for the purchase and sale of 70 of its own KFC restaurants with Izhevsk franchisee - Smart Service Ltd. The final closing of the transaction is expected at the end of this year.

It was reported that the buyer will have an obligation to gradually rebrand all restaurants of the KFC chain, including establishments operating under the franchise. Earlier, Yam Restaurants Rush LLC registered the rights to the Rostic's brand. A new buyer has acquired the rights to this brand and the chain will start changing signs to Rostic's at the beginning of next year.

In March 2022, Yum! Brands has suspended the operation of its own KFC restaurants in Russia and investments in the Russian market. In July, the American corporation announced that it had found a buyer for a business in Russia, but then did not disclose it.

Rostiks has been operating in Russia since 1993 separately from KFC In 2011, the network was completely bought out and renamed KFC.

LLC "Smart Service LTD" belongs to Konstantin Kotov and Andrey Oskolkov — owners of GC "Food Service", which manages 41 KFC establishments under the franchise. Businessmen are also developing eight Rosintera restaurants under the franchise (IL Patio, Planet Sushi and others brands).

AmRest Group is a European multi-brand restaurant operator. AmRest has been present in Russia since 2007 and currently operates 215 KFC restaurants in this market.