The deal will see the fried chicken chain take on all 7,800 team members across the portfolio, over half of which is made of up drive-through restaurants.
KFC, which is owned by Taco Bell and Pizza Hut’s parent company Yum! Brands currently operate 1,040 sites across the UK and Ireland and said the acquisition would help accelerate its growth.
The fast food chain has opened 200 new sites since 2018 and is aiming to launch a further 500 restaurants across the market by 2030.
Sabir Sami, KFC division chief executive officer, said the company was close to becoming a £2b business in the UK.
“The KFC business is a powerhouse for Yum! globally and the UK and Ireland is one of our strongest markets,” Sami added.
EG Group, which is owned by the billionaire Issa brothers who purchased Asda in 2021, said proceeds of the sale would be used to repay some of its debt.
Asda took ownership of much of EG Group’s UK business, including the Leon restaurant brand and over 400 Greggs, Burger King, and Subway restaurants run under franchise, in October.
The KFC sale is expected to complete in the first half of 2024.
Source: The Caterer