Advent acquires China restaurant operator

The founders will continue to manage the company. Financial terms of the transaction were not disclosed.

Bloomberg reported in November last year that Yum China Holdings, Jollibee Foods, and Restaurant Brands International were among the companies considering bids to acquire Wagas. Advent was reported to be in advanced talks in February this year.

Wagas was founded by John Fohlmann Christensen in 1999, inspired by his difficulty finding good Western-style sandwiches in Shanghai. The company now has around 250 outlets across 13 Chinese cities under various brands, including Wagas, Baker and Spice, Funk & Kale and LOKAL.

Advent, with USD76 bn in assets under management, has significant retail experience, including investments in the likes of Lululemon, First Watch, The Coffee Bean & Tea Leaf, Bojangles, IRCA, and Dufry. It has completed 18 deals across China and Asia since 2014, including AI Dream, China’s leading branded mattress provider.

“Consumers are increasingly pursuing healthy lifestyles and we believe demand for casual, quality dining options will continue to see rapid growth. We are highly impressed with Wagas’ people and culture, its dedication to quality, and its longstanding partnerships with top mall operators in China,” David Chen, a principal at Advent, said in a statement.

“Advent has the expertise and strong track record in creating lasting value for restaurant brands and we look forward to providing our best resources, commitment to the brand’s high-quality offering and support for its national growth plans.”

China’s catering industry, including many light food brands, have been severely disrupted by pandemic market conditions, which have seen a wave of M&A activity and bankruptcies. In the health food restaurant niche, Element Fresh confirmed its bankruptcy in December last year.

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• Topics
• Greater China
• Buyouts
• Consumer
• China
• Food
• Advent Partners