Restaurant Brands New Zealand Limited (NZX: RBD) today announced it has entered into agreements to purchase 100% of the shares in Pacific Island Restaurants Inc for US$105 million.
PIR is the sole Taco Bell and Pizza Hut franchisee in Hawaii, Guam and Saipan. PIR’s store network includes 37 Taco Bell stores and 45 Pizza Hut stores.
Restaurant Brands Chairman Ted van Arkel said “Taco Bell and Pizza Hut are both well-established franchises and are leaders in the Mexican and pizza quick service food categories in Hawaii.
In particular, Restaurant Brands is excited to gain exposure to Taco Bell, a brand with attractive margins and a product offering that has worldwide appeal.
We have nearly 20 years’ experience successfully operating the Pizza Hut brand in New Zealand and will look to leverage this experience to drive the Hawaiian franchise’s continued performance.
Restaurant Brands looks forward to working with PIR’s highly experienced management team to drive the next phase of PIR’s growth in Hawaii, Guam and Saipan.”
The acquisition of PIR would be approximately 6% accretive to earnings (excluding non-trading items) per share, based on unaudited non-GAAP pro forma 12 months to September 2016 results for the Restaurant Brands group and allowing for the new shares issued in the entitlement offer and additional debt funding.
“The acquisition of PIR provides the next stage to Restaurant Brand’s growth platform and aligns with our growth strategy” said Russel Creedy, CEO of Restaurant Brands. “It also provides an entry point into the Hawaiian market, which has a similar total population to Auckland and is currently benefitting from positive economic growth.
We also see a number of other potential bolt-on opportunities in the market that we may look to pursue over time where they make strategic and financial sense.”