Premier Capital plc - Acquisition of McDonald’s Romania

Monday, January 25th, 2016

On 22 January, Premier Capital plc announced that its subsidiary company Premier Capital S.r.l. entered into a share purchase agreement with McDonald’s Restaurant Operations Inc. to acquire all the shares of McDonald’s System of Romania Inc. The latter is the sole shareholder of McDonald’s Romania S.r.l. – a company which owns and operates 66 McDonald’s branded restaurants in 21 cities across Romania, employing around 4,000 people.

The announcement explained that the addition of these restaurants to the portfolio of 64 restaurants which are already owned and operated by Premier Capital and its subsidiaries across Malta, Estonia, Latvia, Lithuania and Greece constitutes a significantly increased capacity in the business of the Company. The McDonald’s franchise has been present in Romania since 1995, and is estimated to serve more than 65 million customer every year, which is equal to approximately 180,000 customers per day.

The total consideration of the transaction amounts to USD65.3 million, payable in its majority upon execution of the Share Purchase Agreement, with the remaining balance to be paid in part within two months and in part by not later than 22 January, 2017.

The total gross assets of McDonald’s System of Romania Inc. as at 31 December 2015 (as per unaudited financial statements) stood at USD69.5 million and profits at USD11 million respectively.

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