Investment powerhouse Carlyle Group and Yum China Holdings are leading a competitive bidding process to purchase Jardine Matheson’s restaurant operations that manage KFC and Pizza Hut franchises throughout Hong Kong, Taiwan and several other Asian territories, according to sources familiar with the transaction.
The acquisition, potentially valued at approximately $400 million, has drawn additional interest from Taiwan-based food corporation Uni-President along with several other private equity companies, sources revealed while requesting anonymity due to the confidential nature of the negotiations.
Initial non-binding proposals for Jardine Restaurant Group are expected to be submitted this week, according to three individuals with knowledge of the process.
Based in Hong Kong, the restaurant division manages approximately 1,000 KFC and Pizza Hut locations while providing employment for roughly 25,000 workers across Hong Kong, Macau, Myanmar, Taiwan and Vietnam.
The company’s portfolio also includes PHD, a pizza delivery brand operating in Hong Kong. The combined restaurant operations generate between $35 million and $40 million in earnings before interest, taxes, depreciation and amortization, sources indicated.
A representative for Jardines refused to provide comment on the matter.
Carlyle similarly declined to offer remarks, while Yum China and Uni-President did not respond immediately to requests for statements.
International quick-service restaurant brands with Asian operations have experienced significant growth driven by urban development, younger demographics, and increased consumer preference for affordable, convenient meal options. This growth has attracted substantial investment from regional strategic buyers and private equity investors throughout the last ten years.
The Asia-Pacific fast food industry reached a market value of roughly $270 billion in 2024 and is projected to grow to $465 billion by 2033, according to a ResearchandMarkets.com analysis published last year.
However, consumer expenditure in Hong Kong has remained weak, as noted in Jardines’ 2025 annual report, citing deflationary economic pressures that have negatively impacted the restaurant division’s performance.
Both Carlyle and Yum bring extensive experience in the fast-food sector. Carlyle completed a transaction in December to purchase 100% ownership of KFC Korea. The firm was also involved in a consortium that acquired majority control of McDonald’s China operations in 2017, later selling its position back to the American fast-food company in 2023 for substantial profits.
Yum China, which separated from Yum Brands Inc in 2016, manages KFC and Pizza Hut restaurants throughout mainland China and receives backing from private equity firm Primavera Capital and Jack Ma’s Ant Group.
Should a transaction be completed, industry sources expect the business to be valued at a high single-digit to low-teen multiple of core earnings. Jardines remains flexible regarding whether to sell individual markets or the entire operation, depending on proposal terms, one source noted.
The divestiture aligns with Jardines’ strategy to redirect capital toward its primary business segments.
The company finalized a $4.2 billion privatization transaction for luxury hotel operator Mandarin Oriental in January.
Reuters previously reported in April that Jardines’ DFI Retail division was engaged in discussions with CK Hutchison regarding a potential merger of their Hong Kong supermarket operations.
Those negotiations have since reached an impasse, according to two sources.
A DFI representative declined to comment, while CK Hutchison did not respond immediately to requests for statements.
