Private equity fund Carlyle Group agreed to sell its stake for about $1.8 billionMcDonald’sThe entire stake in the sugar business was sold to the operator of the fast-food chain, which held the stake for six years.investAchieving 6.7x returns, it is one of Carlyle’s most successful transactions out of China.
People familiar with the matter said McDonald’s offer was higher than Carlyle’s previous sale plan. The deal was announced on Monday, but no price was mentioned. Carlyle, which holds 28% of the shares, had initially planned to sell part of its stake in a $4 billion deal with Shinchen Capital, the private equity arm of CITIC Group.
A Carlyle Media representative declined to comment on the sale price or return on investment.
As geopolitical tensions deepen and the economy falters, investors from the United States and Europe are turning away from investing in mainland China. At the same time, the downturn in public markets has depressed asset valuations and made it difficult for private equity firms to sell their once-promising Chinese investments.
Monday’s statement said that under the deal, the headquarterschicagoMcDonald’s will increase its shareholding ratio in its mainland China business from 20% to 48%. CITIC retains 52% shares.