Devyani acquires Indian F&B operator Sky Gate Hospitality for $49.1m
The deal is expected to be completed in May.
KFC operator Devyani International (DIL) has acquired Sky Gate Hospitality Private Limited for a total consideration of $49.1m (₹4.19b).
Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate Hospitality operates five brands namely Biryani By Kilo, Goila Butter Chicken, The Bhojan, Get-A –Way and Krazy Kebab Co.
Devyani said it plans to acquire three brands, namely Biryani By Kilo, Goila Butter Chicken, and The Bhojan. The remaining two brands will be divested within the next nine months. Sky Gate Hospitality has 100 restaurants across 40 cities in India.
“Whilst our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavours of the much-loved Indian food to our portfolio,” Ravi Jaipuria, non-executive chairman at DIL, said.
The consideration will primarily be settled through a DIL equity swap, with the deal expected to complete in May.
The acquisition follows a master franchisee agreement with Malaysian bubble tea brand Tealive in February.
