The secret recipe to KFC deals Thursday, 29th October 2009
Unaffected by the recession, a strategically important cluster of KFC franchise outlets in North Devon and Somerset were recently sold by Kram Restaurants Limited for an undisclosed sum in a deal project managed by industry experts, Smith Cooper Corporate Finance (SCCF).
Kram Restaurants, owned by Mark and Hazel Hodding, originally acquired a number of restaurants from KFC (GB) Limited in 2004 and has since been extremely successful in opening further KFC restaurants throughout Bristol and the South West.
Wishing to sell five of Kram’s restaurants in Devon and Somerset to enable focus on a tighter geographical location in the Bristol area, Mark Hodding enlisted the services of John Farnsworth and David Crump of SCCF, a division of leading Midlands advisory firm Smith Cooper. They provided full project management services including deal structuring and negotiation of the deal.
The five KFC restaurants which have sales of around £5million and are located at Taunton, Bridgwater, Barnstaple, Minehead and Weston-Super-Mare pass to the acquirer, Herbel Restaurants Limited. Although the UK’s largest operator of KFC franchise outlets with an extensive portfolio covering Ireland, Scotland and the Isle of Man, the latest acquisitions are Herbel’s first KFC restaurants in England.
Commenting on the deal and the role played by SCCF, Mark Hodding said : “Personal circumstances meant that it was a priority for us to conclude a favorable deal quickly. There is no doubt that this would not have occurred without the engagement of Smith Cooper Corporate Finance. The professionalism and experience that John and David bought to the table proved to be invaluable and freed me up to concentrate on the day to day issues of running the business. I would have no hesitation in recommending their services to others.”
The deal represents the latest in SCCF’s impressive track record in the KFC sector – having previously advised on fifteen KFC assignments including the sales of Marsdens Caterers of Sheffield and Mercian Fast Foods, a number of acquisition bids, valuations, business plans and fundraising, deal structuring and succession planning projects.
John Farnsworth, partner of Smith Cooper Corporate Finance commented: “In common with many quality fast food franchises, KFC is not feeling the impact of the recession; on the contrary, KFC has achieved double digit growth across its network of almost 800 outlets. Our client, Mark Hodding, retains a number of stores in the Bristol area and continues to be one of the most active new-store-developers in the KFC network. We are delighted to have assisted him in achieving a sale of this important strategic cluster.”
Previously Franchise Director for KFC (GB) Limited, Mark Hodding’s passion for the KFC brand is undiminished, as evidenced by the recently opened “Drive-Thru” at Bristol-Hengrove, and further planned developments in his retained Bristol trade zone. Mark will also maintain his roles on various KFC Councils and Committees and on the Development Forum.
