PAG Asia Capital, the private equity buyout arm of leading investment firm PAG, has acquired 100% of Craveable Brands from Archer Capital and minority shareholders.
Craveable is the largest Australian-owned operator of quick service restaurants with over 580 stores across Australia under the Oporto, Red Rooster and Chicken Treat brands. It also has a growing international network, with stores in New Zealand, Singapore and Sri Lanka and soon to open in Vietnam and a number of countries in the Middle East.
Current management will continue to lead the business. CEO Brett Houldin said: “The transaction will begin a new and exciting chapter for us that will see us further grow Craveable from the solid platform already established. Archer has given us strong support over the last eight years, and we are now very excited to be partnering with PAG and benefiting from their wealth of experience and international connections.”
PAG Chairman and CEO Weijian Shan said: “Craveable Brands is a terrific asset in the Australian QSR market, owning three iconic brands with significant scale. We see great opportunities for Craveable and look forward to working with management on the next stage of portfolio innovation. PAG has a long track record of successful partnerships with established brands and franchisee networks, notably in our work with The Cheesecake Shop, and we look forward to supporting Craveable’s high quality and dedicated franchisees as they grow their business.”
Archer Capital Managing Partner Peter Gold said: “Since our investment in 2011 we have been successful in building this business to approximately $800m of network sales annually. We have had a great experience partnering with the management team led by Brett Houldin and countless hard working franchisees who have transformed the brands and customer experience. We look forward to seeing the business expand and prosper under PAG’s ownership.”
PAG was advised by Goldman Sachs, King & Wood Mallesons and Ernst & Young. Debt for the transaction was underwritten by Goldman Sachs. Archer Capital was advised by Morgan Stanley, Herbert Smith Freehills and Ernst & Young. Financial details of the transaction are confidential and have not been disclosed.
About Craveable Brands
CRAVEABLE BRANDS is home to three iconic Australian chicken brands - Red Rooster, Chicken Treat, and Oporto. With over 580 restaurants across Australia, New Zealand and Asia, our restaurants hire over 12,500 employees and serve over 150,000 customers a day. Craveable Brands has extensive intellectual property focusing on restaurant operations, supply chain, franchising, IT, marketing, store design and construction, food innovation, and customer satisfaction.
About PAG
PAG is a leading Asia-focused investment firm with funds under management across private equity, real estate and absolute return strategies. PAG delivers value to its investors and portfolio companies by providing a world-class platform and an unparalleled network of local, experienced investment professionals in 10 offices across Asia-Pacific and around the world. PAG currently manages US$30 billion in capital for some of the world’s largest institutional investors. For more information please visit www.pag.com.
About Archer Capital
Archer Capital is one of Australia’s leading specialist private equity investors with a track record of delivering above market returns to its investors since 1997. Since inception, Archer Capital’s Partners and executives have closed over 35 acquisitions involving total aggregate funding in excess of $6 billion. For more information please visit www.archercapital.com.au.
