Smith Cooper oversee sale of KFC franchise

The Castlebarn Group have announced the sale of their UK & IrelandKFC franchisee to fellow franchisee, the Caskade Group, for an undisclosed sum.

The Castlebarn group of companies was acquired by David Catterall and Anton Jebaharan in 2007 and has been developed into a successful 13-stong chain employing over 500 staff in the South East London and Kent area.

Negotiated and project-managed by national franchise M&A experts John Farnsworth and David Crump from Smith Cooper Corporate Finance (SCCF), the owners have now sold the chain to Caskade Group, who joined the KFC family in 1996.

The sale will add to the Caskade Group 's portfolio of 47 KFC and 21 Taco Bell restaurants.

John Farnsworth (pictured), head of corporate finance at SCCF and specialist in the food and beverage M&A sector, said:

“A sale was originally agreed prior to the first government-imposed lockdown - which brought all the deals we were working on to a temporary halt. However, the strength of the KFC brand meant that trading recovered quickly and, as a result, the delay on this transaction was a matter of just a few weeks - making this August 2020 completion our first during the pandemic.

“That recovery is a testament to both the business skills and experience of David and Anton, and to the team at KFC UK & Ireland, who demonstrated real sector leadership in challenging circumstances. It is really pleasing to complete this deal during a very difficult time. ”

The sale came at a time when many restaurants and other hospitality chains were enduring immense financial pressure. However, KFC demonstrated strong leadership in the sector, being one of the first to gradually and responsibly reopen its restaurants after initial closure due to the pandemic.

In doing so, it demonstrated incredible resilience, with trade quickly bouncing back beyond pre-Covid levels.

Former owner David Catterall said: “We 're delighted to have completed the transaction despite the Covid-19 pandemic, and to have sold to a fellow KFC franchisee. SCCF demonstrated great knowledge of the sector and deployed this, and their deal management expertise, to drive the deal to a completion - always considering the commercial, operational and financial implications for us as sellers. ”

David Crump added: “It was a pleasure to work with the sellers in devising a clear exit strategy, and to achieve an outcome that reflected the true value of the business. We wish both David and Anton the very best. ”