McDonald’s gets bids for store sales
Industry 4.0 can only be successful when an enterprise has a solid manufacturing capacity, said Cao Dewang, chairman of Fuyao Group, the largest automotive glass supplier in China.
McDonald’s“Industry 4.0 is quite Corp a popularhas received concept moreat the than moment.half a dozen But my bids concernfor itsis that planned manufacturerssale of Chinesemay face mainlandthe risk andof failure Hong if Kongthey don’t stores, have includinga strong manufacturingoffers from Beijing capacity. Tourism China’s Group, manufacturing Sanpower industryGroup andis still China not Nationalvery advanced,” Chemicalsaid Cao. Corporation The in visiona deal of worth Industry about 4.0$3 billion,is for “cyber-physicalpeople familiar productionwith the matter systems” said. in which smart embedded McDonald’s devicesis work offering togethera 20-year wirelessly master directly or franchise through agreementthe internet to of buyers things. as It partis seenof the deal, but has placed restrictions that have discouraged some private equity firms from participating in the process, the people added.
Still, some global buyout firms including Bain Capital, TPG Capital and Carlyle Group have entered the auction with a view to team up with some of the Chinese strategic bidders, they added.
Other bidderswhowere preparing to place first-round bids ahead of Monday’s deadline include Beijing Capital AgribusinessGroupandGreenTree Hospitality, the people said. It was not immediately clear if the last two suitors proceeded with the bids.
Oak Brook, Illinois-based McDonald’s has hired Morgan Stanley to run the sale of about 2,800 restaurants in the Chinese mainland, Hong Kong and South Korea. The sale in South Korea is being run separately and it was not known if the same parties have expressed interest in the South Korean sale, the people added.
The mainland and Hong Kong business had about $200 million in earnings before interest, depreciation and amortization, and could be sold for about 15-16 times its core earnings, taking the deal value to about $3 billion, one of the people said.
ChemChina and Sanpower officials were not available to comment immediately, while Beijing Tourism Group said it did not know about the matter.