US-based buyout firm Advent International has acquired a 60% interest in Chinese healthy food and bakery chain Wagas from its founding shareholders for an undisclosed amount, according to a press statement.
Wagas, which had been looking to offload its business since last year, was reportedly looking to hit nearly $1.2 billion yuan ($188 million) in sales, according to Bloomberg News, which cited a source familiar with the matter. Blue-chip fast-food giants Yum China Holdings, Jollibee Foods and Restaurant Brands International had also shown interest in bidding for the light-meal maker at the time, Bloomberg reported.
“Consumers are increasingly pursuing healthy lifestyles and we believe demand for casual, quality dining options will continue to see rapid growth. We are highly impressed with Wagas’ people and culture, its dedication to quality and its longstanding partnerships with top mall operators in China,” said David Chen, principal of Advent.
“Advent has the expertise and strong track record in creating lasting value for restaurant brands and we look forward to providing our best resources, commitment to the brand’s high-quality offering and support for its national growth plans.”
This is the firm’s second acquisition in Asia’s food and beverage industry following its 2019 takeover of a majority stake in Indian snack maker DFM Foods for over $118 million.
With its $90-billion assets under management, Advent has been actively investing in various sectors globally and Asia, such as retail, consumer and leisure.
Founded in 1999, Wagas now has around 250 locations across 11 major cities in China. The founding shareholders of the group will continue to run the business, said the release.