London-based private equity firm CVC Capital Partners says it has completed an investment in Chinese restaurant chain South Beauty Investment Company Ltd., in which the private equity firm has taken a 82.7% stake, according to an announcement made by CVC.
Terms of the investment were not disclosed, but media reports say that the deal amounts to US$300 million.
The investment will provide an exit for Beijing-based alternative investment firm CDH Investments, which bought an unspecified stake of the restaurant chain in 2008 for US$29.3 million.
Zhang Lan, the founder of South Beauty, remains as chairwoman and is still one of the shareholders. She will continue to play an important role in setting the strategic direction of South Beauty in partnership with CVC.
An Yong will continue to serve as the president and executive director of the board in charge of South Beauty’s day-to-day operations.
"CVC’s vision for South Beauty highly aligns with ours in respect of brand positioning, future growth areas, corporate culture and values," says Zhang Lan.
"I regard the South Beauty brand as my daughter. As founder of South Beauty, I have great sentiment attached to this brand, but I genuinely believe that this partnership will create a bright future for South Beauty in the years to come," she adds.
"We are confident that together with the management team, we will develop South Beauty’s brand potential to the fullest." says Francis Leung, CVC’s chairman of Greater China.
Founded in 1981, CVC has raised over US$67 billion in private equity and credit funds in Europe and the Asia Pacific.