Leading $382 Billion Private Equity Carlyle Group Sells All 28% Shareholding in China McDonald’s to McDonald’s Corporation for $1.8 Billion Representing 6.7x Return on Capital, McDonald’s Corporation Increased China Shareholding from 20% to 48% with CITIC Consortium Owning 52% of Shareholding
24th November 2023 | Hong Kong
Leading $382 billion private equity Carlyle Group is selling all 28% shareholding in China McDonald’s to McDonald’s Corporation for $1.8 billion representing 6.7x return on capital. With the transaction, McDonald’s Corporation China McDonald’s increases shareholding from 20% to 48% with CITIC Consortium owning the remaining 52% of China McDonald’s shareholding. McDonald’s Corporation (20/11/23): “McDonald’s Corporation (NYSE: MCD) and global investment firm Carlyle (NASDAQ: CG) today announced that McDonald’s has agreed to acquire Carlyle’s minority ownership stake in the strategic partnership that operates and manages McDonald’s business in mainland China, Hong Kong and Macau. The CITIC Consortium, mainly through its equity affiliate CITIC Capital, will maintain its controlling ownership stake. Upon completion of the transaction, the CITIC Consortium will continue to own 52%, and McDonald’s will remain a minority partner while increasing its stake from 20% to 48% ownership. The business has generated Systemwide sales growth of more than 30% in the market year-to-date since September 2019. Going forward, the partners will continue working together as the brand executes on its Accelerating the Arches growth strategy in the market, working to deliver on a commitment to develop and open new restaurants and foster deeper engagement with customers. The deal is contingent upon customary regulatory approvals and is expected to close in the first quarter of 2024.” Earlier in July 2023, Private Equity groups Carlyle & Citic Trustar Capital were reported to be planning a $4 billion partial sale of the $10 billion China McDonald’s via a new vehicle to allow existing investors to exit and new investors to invest additional capital.
” Leading $382 Billion Private Equity Carlyle Group Sells All 28% Shareholding in China McDonald’s to McDonald’s Corporation for $1.8 Billion Representing 6.7x Return on Capital, McDonald’s Corporation Increased China Shareholding from 20% to 48% with CITIC Consortium Owning 52% of Shareholding “
Chris Kempczinski, McDonald’s President and Chief Executive Officer: “Our strategic partnership with CITIC and Carlyle has been extremely successful in growing McDonald’s presence in the region since it began. China is now our second largest market; we’ve doubled our restaurants to more than 5,500 since 2017. We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest growing market’s long-term potential.”
X.D. Yang, Chairman of Carlyle Asia: “We very much appreciate the strong partnership we have had with CITIC Capital and McDonald’s Corporation. Together, we transformed the business, accelerating its growth profile and revolutionizing its digital marketing and operational capabilities. The business has always delivered outstanding results and we wish them every success on their next phase of growth.”
Yichen Zhang, Chairman and CEO of CITIC Capital and Chairman of McDonald’s China: “As McDonald’s China’s controlling shareholder, we are thrilled by McDonald’s Corporation’s continued commitment to our long-term partnership and the China market. As we reach towards our goal of 10,000+ restaurants by 2028, we are more confident than ever in our ability to serve the Chinese consumer with McDonald’s iconic taste.”
McDonald’s (NYSE: MCD) is the world’s leading global foodservice retailer with over 40,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $382 billion of assets under management as of September 30, 2023, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 28 offices across four continents. Further information is available at www.carlyle.com . Follow Carlyle on X @OneCarlyle.
Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD17.6 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 290 portfolio companies that span 11 sectors and employ over 600,000 people around the world.
Private Equity Groups Carlyle & Citic Trustar Capital Plan Partial $4 Billion Sale of the $10 Billion China McDonald’s via New Vehicle to Allow Existing Investors to Exit & New Investors to Invest Additional Capital
14th July 2023 – Private Equity groups Carlyle & Citic Trustar Capital are planning a $4 billion partial sale of the $10 billion China McDonald’s via a new vehicle to allow existing investors to exit and new investors to invest additional capital. McDonald’s Corp currently has 5,400 stores and targeting 10,000 stores in China. Singaporea GIC and Abu Dhabi Mubadala Investment have been reported to be interested investors in China McDonald’s. In 2017, China McDonald’s sold 80% of the business for $1.7 billion with Citic Trustar Capital owning 52%, Carlyle Group owning 28% and McDonald’s owning 20%. The company in China was renamed Jingongmen, referring to the golden arches of McDonald’s store.
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