Everything you need to know about the Ibersol Restaurant Brands Iberia relationship.
Ibersol breaks its relationship with Restaurant Brands Iberia and sells its Burger King in Spain and Portugal for 260 million.
Ibersol has ended its relationship with Restaurant Brands Iberia. The Portuguese company broke off negotiations with the Spanish last July. Now, he has decided to restart them to end their bond once and for all.
As reported by Ibersol in the Securities Market Commission, Restaurant Brands Iberia has bought its Burger King restaurants in Spain and Portugal for 260 million euros.
Ibersol Restaurant Brands Iberia relationship
Specifically, the restaurant company announced the signing of a contract for the sale to RBI of these restaurants, with which it expects to achieve a capital gain of up to 160 million euros in the case of fully receiving the maximum value of the price of the operation.
Ibersol has signed a share purchase agreement relating to the sale to BK Portugal and Burger King Spain (companies controlled by Restaurant Brands Iberia) of the titles representing the entire capital, respectively, of Iber King Restauração and Lurca, companies that operate Burger King restaurants in Portugal and Spain.
As reported by the company lusa in the CMVM, the price corresponds to an enterprise value of of 259.7 billion in cash and debt-free, with a part of the price, for an amount of eur 15 million, subject to verification of conditions related to the future evolution of the gross operating profit (Ebitda) and the generation of cash flows.
Ibersol Restaurant Brands Iberia relationship reality
The reality is that Ibersol and Restaurant Brands Iberia have been negotiating for months the sale of the 159 Burger King restaurants that the Portuguese group managed in Spain and Portugal. On July 14, Ibersol decided to break off those negotiations. However, a few weeks later he resumed them to finish making the decision to sell and thus close the deal.
For its part, RBI did not see the halt in negotiations as an affront. In fact, quite the opposite. The Spanish company, which integrates the exploitation rights as a master franchise for Spain and Portugal of Burger King, Tim Hortons and Popeyes, has always indicated that they were willing to continue negotiations with Ibersol to try to reach an agreement "attractive for both parties".
With this purchase, according to Expansión, RBI integrates 121 establishments in Portugal and 31 in Spain, reaching 775 of its own premises, adding 4,000 employees and raising its total workforce to more than 20,000 workers in the Peninsula.
With this operation, RBI, which had a turnover of 637 million euros last year, will manage 65% of Burger King restaurants in Spain. Its objective is to make Portugal a key market for Burger King worldwide and it plans an investment of 150 million to carry out 90 new openings that generate 6,500 jobs until 2025.
Ibersol Restaurant Brands Iberia relationship details
- Restaurant Brands Iberia has reached an agreement with Ibersol and has bought the 159 Burger King that the Portuguese company had in Spain and Portugal for 260 euros.
- Ibersol expects to achieve a capital gain of up to 160 million euros in the event of fully receiving the maximum value of the transaction price.
