Foodservice Equipment Reports

New Owners Seal Investment In Saudi QSR Chain, Kudu

Private-equity houses Abraaj Group and TPG Capital have signed a deal to buy a majority stake in Kudu, the Saudi Arabian QSR chain. Kudu, a family-owned company established in 1988, is the largest QSR chain in the kingdom, with more than 200 outlets. Famous for its burgers and breakfasts, the Riyadh-based chain is estimated to be worth around $400 million.

The deal is a first in the region for TPG, a Texas-based buyout firm.

No valuation was given for the deal, which will take the form of a Sharia-compliant debt investment. The restaurant chain entered into exclusive talks with the two private-equity firms a year ago. According to a joint statement released by Abraaj and TPG, the investment would allow Kudu’s management to accelerate its expansion plan: “The regional quick-service restaurant sector is primed for further growth due to the attractive demographics, rising disposable incomes and under-penetration of restaurant chains across the region.”

Kudu has appointed Glen Helton as its new CEO, along with a new management team to expand its business.

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