Rahul Bhatia-controlled InterGlobe group is in its final stage of talks to acquire the Indian franchise of fast-food restaurant chain Burger King from private equity firm Everstone Capital for a whopping Rs.1,400 Crore.
Earlier two US-based buyout firms and a local private equity fund were interested in the deal but backed out because of a valuation mismatch making way for Bhatia consoled InterGlobe group.
The fast food chain operates around 140 outlets in India and has made Rs 375 crore worth of sales in FY18. From the consolidated level, it might be making losses but it is making operating profit at the store level.
The development comes at a time when Bhatia is locked in a dispute with Rakesh Gangwal over their flagship airline IndiGo. Bhatia has a forayed into multiple business segments including hospitality, hotel business, IT services, travel booking and luxury goods. His hotel business along with the Accor group operates the Ibis, Novotel and Pullman brands.
Everstone Capital invested in setting up Burger King in the country five years ago. It also runs some of the chain’s restaurant in Indonesia, which is not part of the current deal in talks. The firm also has rights to restaurant brands such as Coffee Bean & Tea Leaf, Noodle Bar, Copper Chimney and Bombay Blue as well as Domino’s Pizza in Indonesia.