Domino's Pizza among bidders circling for takeover of UK fried chicken chain Wingstop
by Graeme Whitfield, Henry Saker-Clark PA Deputy Business Editor · ChronicleLiveFour potential buyers, including Domino’s Pizza, are reportedly in the running to acquire Wingstop's UK operation.
The sale could value the UK franchise of the fried chicken chain at approximately £400 million. US investment group Sixth Street and private equity firms KKR and TSG Consumer Partners are also said to be eyeing a possible takeover deal. Final bids for the business must be submitted by December 16.
Wingstop currently operates 56 locations across the UK, having opened 17 new sites this year as part of an aggressive expansion strategy. The company was introduced to the UK market by Tom Grogan, Saul Lewin and Herman Sahota, who still retain a minority stake in the business.
The New York-listed Wingstop group, which runs over 2,000 branches in its US operation, holds a minority stake in UK master franchisee Lemon Pepper Holdings. The growing demand for Wingstop comes amidst the continued success of chicken chains in the UK, with Popeyes also rapidly launching new outlets and newcomers like Dave’s Hot Chicken and Chick-fil-A entering the scene.
Domino’s Pizza is among the potential purchasers for Wingstop. In a presentation to investors last December, Domino’s stated that while it would concentrate on expanding its core pizza business, it would also consider adopting a second brand if it identified "synergies" with its existing assets.
Both Wingstop UK and Dominos Pizza group have declined to comment, while Sixth Street, KKR and TSG Consumer Partners have been approached for comment.