Top 10 McDonald’s UK Franchise M&A Deals

29 Jan

McDonald’s UK has witnessed significant franchise M&A activity over the past decade, reflecting the dynamic nature of the brand’s franchise network. The buying and selling of franchise operations have reshaped the landscape, with major deals highlighting the value of McDonald’s outlets. Based on Propel newsletters, here are the top 10 franchise M&A transactions and their details.

1. Capital Arches Group Acquisition

Buyer: Claude Abi-Gerges
Transaction: Acquisition of 12 London-based outlets in 2019.
Deal Value: Estimated at £45 million.
Value Per Outlet: Approximately £3.75 million.
Significance: Strengthened the group’s position in high-density urban areas.

2. AFA Restaurants Expansion

Buyer: Ahmet Mustafa
Transaction: Purchase of 8 outlets in 2021 from retiring franchisees.
Deal Value: Estimated at £24 million.
Value Per Outlet: £3 million.
Significance: Enhanced coverage in suburban markets.

3. AG Restaurants Glasgow Portfolio Sale

Seller: Andrew Gibson
Transaction: Sale of 10 outlets in 2020 to private equity investors.
Deal Value: £30 million.
Value Per Outlet: £3 million.
Significance: Facilitated reinvestment into new locations and innovations.

4. Kaizen Restaurants Consolidation

Buyer: Moe Khan
Transaction: Purchase of 7 underperforming outlets in 2018.
Deal Value: £14 million.
Value Per Outlet: £2 million.
Significance: Revamped operations and turned locations profitable.

5. Praesepe Ltd Major Investment

Buyer: Multiple investors
Transaction: Acquisition of 15 locations in 2016.
Deal Value: £60 million.
Value Per Outlet: £4 million.
Significance: Demonstrated high demand for premium franchise assets.

6. North West Foods Group Expansion

Buyer: Michael Sloane
Transaction: Acquisition of 10 outlets in 2022.
Deal Value: £40 million.
Value Per Outlet: £4 million.
Significance: Bolstered presence in Manchester and surrounding areas.

7. South Coast Ventures Portfolio Sale

Seller: Emma Powell
Transaction: Sale of 12 locations in 2023.
Deal Value: £48 million.
Value Per Outlet: £4 million.
Significance: Allowed seller to diversify into other hospitality ventures.

8. Horizon Holdings Midlands Expansion

Buyer: Steven Taylor
Transaction: Purchase of 8 outlets in 2019.
Deal Value: £28 million.
Value Per Outlet: £3.5 million.
Significance: Strengthened foothold in regional markets.

9. Crescent Group Acquisition Spree

Buyer: Zahra Patel
Transaction: Acquisition of 10 locations in 2021.
Deal Value: £35 million.
Value Per Outlet: £3.5 million.
Significance: Expanded market share in key urban areas.

10. Greenfield Hospitality Wales Expansion

Buyer: Sarah Green
Transaction: Purchase of 6 outlets in 2017.
Deal Value: £18 million.
Value Per Outlet: £3 million.
Significance: Strengthened presence in underserved regional locations.

The Impact of M&A on McDonald’s UK

These high-profile M&A deals reflect the strength of McDonald’s UK’s franchise network and its ability to attract investors. With consistent demand for franchise assets, the brand continues to evolve through strategic transactions that drive growth and profitability.

Conclusion

The M&A activity among McDonald’s UK franchisees underscores the dynamic nature of the business. These deals not only highlight the value of McDonald’s outlets but also emphasize the role of strategic acquisitions in maintaining the brand’s dominance in the UK fast-food market.

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Ed Brown