South Africa's Famous Brands gobbles up Gourmet Burger Kitchen

South Africa’s Famous Brands, the owner of Wimpy, has agreed to buy Gourmet Burger Kitchen in a £120m deal.

Famous Brands said the purchase will be funded by way of cash and short-term funding.

Kevin Hedderwick, Famous Brands’ group strategic advisor responsible for M&A activity said: "Enhancing the compelling rationale for this acquisition is the benefit we have derived from the substantial devaluation of the rand since we commenced negotiations with GBK earlier this year.

"In terms of scale and scope, this is the biggest deal the group has ever concluded, and one which will transform the future of the business. It will be as much of a game-changer for the group as our acquisition of Wimpy SA was in 2003. Quite simply, GBK is a best in class business and brand, with growing consumer equity, supported by a phenomenal leadership team."

Famous Brands said GBK’s team will continue to manage the business and no changes to personnel are planned .

GBK was launched in South London in 2001 by three New Zealanders. In 2010, it was acquired by Yellowwoods Group, the investment firm controlled by South Africa’s Enthoven family.

Alasdair Murdoch, chief executive officer of GBK, said: "Our aims remain the same: to continue opening 10-15 restaurants a year in the UK, continually elevate our food, and look at other growth opportunities. We feel honoured to be the next chapter of the Famous Brands’ story and we are delighted to be part of the team."