EQT mulls deal for Dairy Queen, Papa John’s China franchisee – report

According to The Wall Street Journal, a stake sale has been in the offing for months, with CVC Capital Partners also among the interested parties.

Warburg Pincus invested an undisclosed amount in RCS in 2008. The company, which is headquartered in Shanghai, owns franchisee rights for the chains in 19 Chinese provinces - a network that includes more than 140 Papa John's Pizza stores and over 130 Dairy Queen outlets.

Private equity has entered the low- to-mid-priced food market as Chinese consumers are getting richer, busier, and looking for more restaurant options.

Earlier this month, Capital Today committed RMB129 million ($21 million) for a 10% stake in Home Original Chicken, a Chinese fast food chain.

Last year, LionRock Capital led an $11.5 million Series C funding round for YPX Cayman Holdings, which operates the Cloud 9 casual dining chain in China. Unitas Capital also invested $40 million in Chinese restaurant chain Babela's Group.

There has also been one other secondary exit of note: last year Actis sold Chinese hotpot chain Xiabu Xiabu to General Atlantic after an investment period of four years.

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• Topics
• Greater China
• Consumer
• Exits
• Investments
• China
• EQT Partners
• CVC Capital Partners
• Consumer
• Warburg Pincus Asia
• Secondaries
• Exit
• Growth capital