EG Group is selling all 218 of its UK and Ireland KFC franchise restaurants to restaurant company Yum! Brands’ KFC Division.
The transaction is part of the group’s “significant” deleveraging strategy to ensure it has a sustainable capital structure.
The sale is expected to complete in the first half of 2024, with proceeds used to repay debt.
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EG Group co-founders and co-CEOs Zuber and Mohsin Issa said: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.
“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK and Ireland.”
The billionaire brothers added: “We would like to thank all the colleagues who have helped deliver such exceptional brand standards and customer service over recent years, including during the Covid-19 period.
“We continue to make good progress against our key strategic priorities – delivering a world-class grocery and merchandise, foodservice and fuel proposition across nine markets globally.”
The group continues to operate franchise businesses including Greggs, Starbucks, Subway, Krispy Kreme, and its wholly-owned bakery business Cooplands, in the UK.
In October, Asda completed its acquisition of EG Group’s UK business for an enterprise value of £2.07bn and last month, the group said the deal has “significantly” reduced its debt.
