Yum China takes control of Chinese hotpot chain Huang Ji HuangBusiness | 23 Aug 2019 5:50 pm
Dining giant Yum China Holdings, Inc. has announced it will acquire a controlling stake in local casual dining franchise brand Huang Ji Huang group in its business expansion in the Chinese market, Xinhua reports.
The two parties have entered into a definitive agreement about the acquisition, while the transaction, still subject to the satisfaction of closing conditions and regulatory approvals, is expected to close in early 2020, according to a press release posted on the website of Yum China.
The deal is expected to create synergies by leveraging Yum China's strength, and Huang Ji Huang's track record of product research and development and brand management.
Founded in 2004, Beijing-based Huang Ji Huang has more than 640 restaurants in China and overseas. The group operates primarily under a franchise model and its brand portfolio consists of "Huang Ji Huang," a hot pot brand, as well as "San Fen Bao," a newly launched Chinese fast food concept.
Yum China, which runs well-known dining brands like KFC and Pizza Hut, is the largest restaurant company in China, with over 8,700 restaurants as of June 30, 2019.