EG Group has agreed to sell all of its 218 KFC franchise restaurants across the nation to Yum! Brands’ KFC Division for an undisclosed sum.
The global forecourts and food service operator was the largest KFC franchisee in the UK and Ireland.
It said the deal is the latest step in its de-leveraging strategy to put in place a sustainable capital structure.
The sale is expected to complete in the first half of 2024, with proceeds set to be used to repay debt.
Once finalised, all of EG’s KFC UK and Ireland business will come under KFC UK and Ireland management.
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EG Group co-founders and co-CEOs brothers Zuber Issa and Mohsin Issa said: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.
“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK and Ireland.”
Last month EG Group published its third quarter results, which revealed a reduction in debt, but also saw both revenues and EBITDA fall.
The company said the sale of its UK and Ireland business to Asda had “significantly” reduced its debt burden, despite the forecourt giant reporting a drop in profits.
EG Group offloaded its UK and Republic of Ireland operations in a $2.5bn sale to the supermarket, which is also owned by the brothers, in October.
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