IMC, Pizza Hut, and KFC in Brazil Merge into New Food Giant
27 Jul 2019 - This Friday, July 26th, the International Meal Company Food (IMC) reached an association agreement with entrepreneur Carlos Wizard Martins’ family to incorporate MultiQSR, an indirect holder of Pizza Hut and KFC franchise rights in Brazil.The business may give rise to a company with sales of over R$2 billion (US$500 million).
As a result of the merger, the billionaire Martins family will receive almost 30 million IMC common shares, the equivalent of 15 percent of the company’s total common stock, thus becoming the company’s largest individual shareholder.
The group’s range of brands will include Frango Assado, Viena, KFC, Pizza Hut and Margaritaville, among others.
As part of the merger negotiations, which still need to be approved by a shareholders meeting, the number of members on the board of directors will increase from six to seven, as well as the dismissal and election of the several members.
IMC’s merger with the Pizza Hut and KFC systems, if implemented, will result in a unique company in the foodservice sector that, considering 2018, would have generated over R$1.8 billion in gross revenue and more than 460 points of sale. After adding in franchisees’ revenues, the figure rises to approximately R$2.3 billion.
The entrepreneur bought operation in 2018
Early last year, entrepreneur Carlos Wizard Martins and his children announced that they had reached an agreement with Yum! Brands to buy the Pizza Hut and KFC brand operations in Brazil, thus becoming the master franchisee of the two chains in the country. The deal’s market value was not disclosed.
Through this deal, Wizard and his children are now in charge of brand management, the relationship with the current franchisees, and the expansion of networks in Brazil.
The Rio Times