Jubilant Foodworks Ltd(JFL) will invest Rs 92 Crores to buy 10.76% equity shares of Barbeque Nation Hospitality Ltd(BNHL). Jubilant is already running fast-food chains of brands Domino’s Pizza and Dunkin’ Donuts. This is the first time for JFL to enter in cuisine business that is totally different from fast food.
As per the agreement, each share is having a price tag of Rs 5. This deal will be through cash only. Complete paperwork and cash exchange formalities are going to be finalized by 25 January.
The jubilant spokesperson stated, “through this deal, around 36,59,764 equity shares of BNHL will be acquired by Jubilant.”
Jubilant Foodworks, a Noida based Indian Company, also runs Domino’s Pizza franchise in Srilanka, Bangladesh, and Nepal. The company is also operating a totally homegrown brand Hong’s Kitchen. Hong’s kitchen is the company’s first homegrown brand. It provides the best Chinese foods. Not only the food, but the design of this Chinese brand is also totally inspired by the traditional Chinese system. The first restaurant of the new Chinese venture was launched in Gurugram in March 2019.
JFL, a Jubilant Bhatia Group initiative, has a total of 30000 employees under 1260 restaurants and 12 distribution centers operated through 280+ cities of India.
After looking at the popularity of Biryani, Jubilant also started Ekdum! brand to serve Biryani, a rice-based dish.
Barbeque Nation brought a concept of over table live grill concept in 2006. Customers can enjoy grilling on their table itself. Current the company is having 138 outlets in India. They also started new outlets in UAE, Oman, and Malaysia as per the international expansion plan.
Fixed price unlimited national cuisine with a variety of dishes have made BNHL popular among the masses.
With a brand name Toscano, BNHL has also entered the Italian Cuisine segment.
Under a survey done by Economic Times in 2019, the company secured 13th rank among best companies to work in India across all categories. Barbeque had a revenue of Rs 742 crores in FY 2019. Earlier this year, SEBI approved barbeque for an initial public offering.
Jubilant Foodworks hopes that the current deal with BNHL will add more value to its shareholders.