McDonald’s Corp. has reached a pact to sell most of its China- and Hong Kong–based operations to Citic, the Chinese state-backed entity, along with Carlyle Group for as much $2.1 billion. The ownership structure shakes out to 32 percent for Citic, and affiliate Citic Capital gets 20 percent ownership. Carlyle gets 28 percent of the business, and McDonald’s retains 20 percent.
The deal stretches out over 20 years and helps McDonald’s expand without having to draw down significant amounts of its own capital. All told, McDonald’s has 2,400 restaurants across the mainland and another 240 locations in Hong Kong. The goal is to add 1,500 restaurants over the next half year.
Here are the numbers:
~$2.1 billion | Value of McDonald’s sale to Citic and Carlyle Group
32 percent | Owned by Citic
20 percent | Owned by Citic Capital
Advertisement: Scroll to Continue
28 percent | Owned by Carlyle Group
20 percent | Owned by McDonald’s
2,400 | Number of McDonald’s locations in mainland China
240 | Number of McDonald’s locations in Hong Kong
1,500 | New restaurants McDonald’s wants to add in the next six months
