McDonald’s agrees to buy back Carlyle stake in China
Carlyle has agreed to sell its minority stake in McDonald's China back to the parent company.
Why it matters: Under the investment company Citic and Carlyle, the region has become McDonald's second-largest market — and broadly, could be a boon for future PE deals in China.
- McDonald's made an unsolicited buyout offer to Carlyle for the stake, a source familiar tells Axios' Dan Primack.
Of note: While Carlyle said it planned to move away from U.S. buyouts in the consumer, media and retail sectors, its Europe and Asia CMR teams wouldn't be affected.
Details: Citic Consortium will maintain its 52% stake in the business that operates and manages McDonald's business in mainland China, Hong Kong and Macau, while McDonald's will hold a 48% stake, increasing from 20%, once the deal closes.
What they're saying: The chain has doubled its restaurant count to more than 5,500 in the region since 2017, McDonald's says; systemwide sales growth has increased to over 30% year over year since September 2019, per McDonald's and Carlyle.
- "The business has always delivered outstanding results and we wish them every success on their next phase of growth," X.D. Yang, Carlyle Asia's chairman, said in a statement.
- Carlyle declined to comment further.