CVC poised to buy China restaurant chain South Beauty - report

Beijing-based South Beauty, which operates a chain of almost 70 restaurants throughout China serving spicy Sichuan-style food, had previously sought to raise as much as $200 million via an IPO. However, its application was rejected by regulators last year.

According to Reuters, CVC is negotiating to buy 69% of South Beauty while the restaurant chain's founder Zhang Lan will hold a 31%. The PE firm is said to be arranging $140 million in loan financing to support the deal.

If the deal goes through it would provide an exit for CDH investments which bought an undisclosed stake in South Beauty in 2008 for $29.3 million. Set up in 2000, South beauty posted EBITDA of RMB308 million ($50.7 million) for the 12 months ended July 2013.

Casual dining has proved a popular target among PE investors in China. Earlier this month IDG Capital Partners invested RMB250 million in Peking duck chain Quanjude, while in July EQT Partners was reported to be mulling the purchase of a minority stake in  RCS Group - which holds the franchisee rights for the Dairy Queen and Papa John's Pizza - from Warburg Pincus.

Last year, Actis exited its stake in hot pot chain Xiabu Xiabu to General Atlantics, while in February the same year Unitas Capital invested $40 million in Babela's Group.

 

 

 

 

 

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• Topics
• Consumer
• Greater China
• Buyouts
• Consumer
• CVC Capital Partners
• CDH Investments Management
• China
• buyout