FAST Food Company Famous Brands Said Today It Had Bought 75% Of Wimpy UK

Business Day;

FAST Food company Famous Brands said today it had bought 75% of Wimpy UK for £3m and would invest an extra £2m in the brand.

Famous Brands, which runs restaurants such as Debonairs pizza and Steers burger chains in SA, had said in December it was in talks that could affect its shares, which boosted the stock then by more than 5%.

In early trade, Famous Brands shares had fallen 3,05% to R15,90, lagging a slightly weaker Johannesburg Mid-cap index.

Famous Brands said the £5m investment would be funded through a combination of cash reserves and debt finance.

Famous Brands’ chief operating officer Kevin Hedderwick said in a statement the deal had been in the making for two years.

“We are delighted to announce a transaction of this nature which provides a strategic opportunity to consolidate the Wimpy brand and gain access to the UK market.”

Wimpy UK comprises 194 outlets across England, Scotland and Wales. It operates a further 20 restaurants under a master licence arrangement in Ireland and is the largest independently owned franchised restaurant chain in Britain.