Private equity group Carlyle and Yum China are among several bidders competing to acquire Jardine Matheson’s restaurant business across parts of Asia, in a deal that could value the assets at around $400m, according to a report by Reuters, citing unnamed people familiar with the process.
The portfolio includes KFC and Pizza Hut operations in markets such as Hong Kong, Taiwan, Myanmar, Vietnam and Macau, as well as the PHD pizza takeaway brand. In total, the network spans roughly 1,000 outlets and employs about 25,000 staff across the region.
Non-binding bids for the Jardine Restaurant Group are expected this week, with additional interest reportedly coming from Taiwanese food group Uni-President and other private equity firms.
The business is estimated to generate earnings before interest, tax, depreciation and amortisation of approximately $35m to $40m, making it a relatively small but strategically attractive asset in Asia’s fast-food sector.
Consumer-facing businesses in the region have benefited from long-term structural drivers such as urbanisation, a young demographic profile and demand for affordable dining options, although softer discretionary spending in markets such as Hong Kong has weighed on performance more recently.
Carlyle has been active in the quick-service restaurant space across Asia, including a recent acquisition of KFC Korea and prior involvement in McDonald’s China operations. Yum China, which operates KFC and Pizza Hut in mainland China following its spin-off from Yum Brands, is also a major strategic player in the sector, backed by investors including Primavera Capital and Ant Group.
Jardine Matheson is said to be considering flexible sale options, including the potential disposal of individual markets or the entire regional portfolio, depending on bid outcomes.
The divestment forms part of a broader portfolio reshaping effort by Jardine, which recently completed a $4.2bn take-private transaction of Mandarin Oriental and has also been reassessing its retail exposure in Hong Kong amid ongoing structural changes in the local consumer market.
