Subhead of release should be removed, and "joint venture" should be added to the second graph, second sentence.
The corrected release reads:
BURGER KING WORLDWIDE, INC. AND ALSEA, S.A.B. DE C.V. SIGN NEW JOINT VENTURE TO SIGNIFICANTLY EXPAND BRAND PRESENCE IN MEXICO
Burger King Worldwide, Inc. (NYSE: BKW), today announced that it has entered into a joint venture agreement for Mexico with Alsea, S.A.B. de C.V. (BMV: ALSEA) focused on significantly increasing the BURGER KING
brand presence in this important market.
As part of the transaction, ALSEA and BKW will contribute their BURGER KING
restaurants in Mexico to form a joint venture through a merger of BKW’s Mexican subsidiary into Operadora de Franquicias Alsea S.A. de C.V. (OFA). The new joint venture company will own 203 BURGER KING
restaurants in Mexico and has committed to open several hundred more over the next several years.
ALSEA, a leading operator of quick service restaurants, coffee shops and casual dining establishments in Latin America, has been operating BURGER KING
restaurants for more than ten years in Mexico. As part of the joint venture, OFA will acquire the following rights and obligations:
- Acquisition of 97 BURGER KING ® restaurants, bringing ownership count to 203 BK ® restaurants;
- Operating control of the BURGER KING ® brand throughout all of Mexico;
- Exclusivity in Mexico for 20 years;
- Collection of royalties from sub-franchisees;
- An annual development plan that includes the opening of new corporate and sub-franchised BURGER KING ® restaurants over the next 20 years; and
- In exchange for a cash payment to BKW, ALSEA will maintain a majority stake in the joint venture, while BKW will maintain the minority stake.
“We are thrilled to announce the expansion of our long-standing relationship with ALSEA and believe they are the right partner to drive significant growth for the BURGER KING
brand in Mexico,” said Jose Tomas, president, Latin America and Caribbean, BKW. “Over the past 20 years, the BURGER KING
brand has become the largest fast-food hamburger restaurant company in Mexico and the preferred choice among consumers. With this new joint venture, we will significantly increase our presence in the country and introduce more consumers to our signature flame-grilled menu items.”
Alsea’s Chief Executive Officer Fabián Gosselin said, “We are very pleased with the acquisition and agreements reached, because BURGER KING
is the brand with the highest market penetration and it's also the brand that is perceived to be the best by the Mexican consumer in this segment.” He added, “Maintaining the control and operation of the brand presents us a great opportunity to consolidate in Mexico and increase the potential growth.”
There are currently 409 BURGER KING
restaurants in Mexico operated by ten different franchisees. The transaction is subject to regulatory approval in Mexico.
In 2012, BKW successfully introduced similar joint ventures in South Africa, Russia and China and in 2011, in Brazil – all focused on increasing market share in key markets across the world.