Art of investments


VTB Capital forms a joint venture with Burger King

Tags: private equity

Jun 6, 2012
VTB Capital has established a joint venture with Burger King Corporation, the second largest fast food hamburger restaurant chain in the world, and Burger Rus, the largest Russian Burger King franchisee, to develop and expand the restaurant’s chain and brand presence in Russia.

The new company has signed a long-term master franchise and development agreement with Burger King Europe GmbH, and has obtained the exclusive rights to grow the franchise of the global restaurant chain in Russia.

By combining significant financial resources with industry-leading operational know-how, the joint venture is uniquely positioned to succeed in the fast-growing and underpenetrated quick-service restaurant (QSR) market in Russia. The joint venture will be opening several hundred Burger King restaurants in Russia in the next few years.

Tim Demchenko, Head of Private Equity and Special Situations at VTB Capital, said: "This deal is yet another milestone in growing VTB Capital’s private equity business, and another example of VTB Capital successfully forming international partnerships to develop attractive market opportunities in Russia and CIS. We plan to continue entering into partnerships with top-tier international companies to take advantage of the strong underlying consumer demand and underpenetrated market in Russia".  

Yevgeny Senderov, Director, Private Equity and Special Situations at VTB Capital, added: “We strongly believe that the combination of VTB Capital’s wide-ranging experience of investments across a number of industries in Russia with Burger King’s global best practice standards and Burger Rus’ local knowledge will create a winning formula for all shareholders.”

Jose Cil, President, EMEA at Burger King Corporation, commented on the deal: “This joint venture is an excellent example of Burger King Corp.’s successful international growth strategy, whereby we focus on strategic partnerships with franchisees that have a proven record of success with the brand”.

Alexander Kolobov, Burger Rus managing shareholder, said:  “The growth potential of the Russian QSR market is tremendous as we have witnessed by the success of the 54 Burger King restaurants that we already operate in the country. The strength of the Burger King brand and its world-famous products such as the iconic Whopper sandwich is a key driver for further growth in this market.”

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