The news comes just days after Craveable Brands staple Oporto announced further Asian expansion, with the signing of a master franchise agreement in Vietnam.
Under the new ownership, the current management will continue to lead the group’s international network, in addition to its 580 Australian stores.
Brett Houldin, CEO said the Craveable Brands sale launch a new era for the multi-brand franchisor.
“The transaction will begin a new and exciting chapter for us that will see us further grow Craveable from the solid platform already established,” Houldin said.
“Archer has given us strong support over the last eight years, and we are now very excited to be partnering with PAG and benefiting from their wealth of experience and international connections.”
Craveable Brands sale background
PAG Asia Capital had firmed as the favourite for the Craveable Brand sale, follow a months of media speculation. The capital firm had previously invested in iconic Australian franchise The Cheesecake Shop, bolstering the business’ ongoing development.
Weijian Shan, PAG chairman and CEO said Craveable’s stable of successful franchise brands made it a lucrative proposition.
“Craveable Brands is a terrific asset in the Australian QSR market, owning three iconic brands with significant scale,” Shan said.
“We see great opportunities for Craveable and look forward to working with management on the next stage of portfolio innovation. PAG has a long track record of successful partnerships with established brands and franchisee networks, notably in our work with The Cheesecake Shop, and we look forward to supporting Craveable’s high quality and dedicated franchisees as they grow their business.”
Archer Capital investment
The latest Craveable Brands sale announcement puts an end to the group’s eight0year partnership with Archer Capital.
Peter Gold, Archer Capital managing partner said working with Craveable had been mutually enriching experience.
“Since our investment in 2011 we have been successful in building this business to approximately $800m of network sales annually” Gold said.
“We have had a great experience partnering with the management team led by Brett Houldin and countless hard working franchisees who have transformed the brands and customer experience. We look forward to seeing the business expand and prosper under PAG’s ownership.”
PAG was advised by Goldman Sachs, King & Wood Mallesons and Ernst & Young. Debt for the transaction was underwritten by Goldman Sachs. Archer Capital was advised by Morgan Stanley, Herbert Smith Freehills and Ernst & Young. Financial details of the transaction are confidential and have not been disclosed.