South African dining and fast-food giant Famous Brands has secured a deal to buy a 49-percent stake in the restaurant subsidiary of Nigerian conglomerate UAC, it announced Monday.
The deal with UAC Restaurants will boost Famous Brands’ presence in Africa’s most populous nation, where it has operated under franchise agreements for the past 11 years.
The value of the deal, which takes effect on October 1, was not disclosed.
UAC Restaurants operates leading Nigerian fast-food brand Mr Bigg’s and has 165 franchised restaurants in 32 cities across Nigeria and Ghana.
The UAC group also has interests in property development, logistics and agro-processing.
As part of its strategy, Famous Brands is seeking to entrench its presence across Africa.
The group, which operates popular fast-food chains such as Wimpy, Steers and Debonairs Pizza, has 172 restaurants across the continent, mainly in neighbouring countries but also as far afield as Sudan.
Companies in South Africa, the continent’s economic powerhouse, are increasingly searching for opportunities abroad amid slowing growth at home.