Hillhouse Capital Reportedly In Talks To Acquire Yum China

China’s Hillhouse Capital is reportedly in talks to buy Yum China Holdings, Inc., the operator of KFC and Pizza Hut, according to a media report.

Hillhouse is planning to form a consortium with other investors for the deal. And the talks are still at early stage, according to the report.

Hillhouse Capital did not immediately respond to China Money Network’s email seeking comments. Yum China said it doesn’t comment on market rumors.

Yum China separated from Yum! Brands Inc. in 2016 to become an independent and listed company. As of the end of 2017, the company had over 7,900 restaurants in China, and brands including KFC, Pizza Hut, East Dawning, Little Sheep and Taco Bell.

In 2017, it recorded revenues of US$7.1 billion, representing 5.8% increase compared to 2016, and a net income of US$403 million, representing a 20% decrease from 2016.

Founded in 2005 by Zhang Lei, who previously worked for Yale Endowment, Hillhouse focuses on the consumer, TMT, industrials and healthcare sectors and invests in companies across all equity stages. Hillhouse manages capital for institutional clients such as university endowments, foundations, sovereign wealth funds, pensions and family offices.

Its portfolios include local services provider Meituan Dianping, ride hailing giant Didi Chuxing, bike sharing firm Mobike, and electric vehicle maker NIO.

China Expert network