Brazilian restaurant operator International Meal Company Alimentacao SA (IMC) reached an agreement to merge with the main Pizza Hut and KFC franchisor in Brazil, as the companies seek savings in logistics and purchasing.
According to a presentation of securities, the Martins family, which controls the master franchisor MultiQSR, will receive approximately 29.3 million common shares issued by IMC and will have a 15% stake in that company.
MultiQSR operates 187 Pizza Hut units and 62 KFC units in Brazil as proprietary and sub-franchised restaurants.
The combined company would have had estimated total revenues of 2.3 billion reais (US $607 million) in 2018, considering the revenues and sales of franchises of approximately 460 stores.
IMC, in which the private equity firm Advent International Corp has a 10% stake, was valued in the agreement at 1.3 billion reais (US $343 million), or 8 reais (US $2.11) per share.
Shares in IMC rose 36% this year and were quoted at 8.75 reais this past Thursday.
In addition to MultiQSR, the Martins family is also the master franchisor of Taco Bells in Brazil and runs a series of retail, payment and sporting goods.
The agreement has yet to be approved by the shareholders and the Cade antitrust agency in Brazil.