Private equity and investment advisory firm CVC Capital Partners announced that they have gained the approval of related authorities to acquire the Sichuan cuisine restaurant brand South Beauty.
After the acquisition, Zhang Lan will continue to hold the chairman position of South Beauty. As a member of the board, she will be in charge of the company's decision making along with the CVC team.
South Beauty Group said that they welcome the joining of CVC and the acquisition represents this international financial organization's attention to the Chinese dining industry and its recognition of the South Beauty brand.
Zhang Lan, founder of the South Beauty brand, said that South Beauty and CVC share common ideas about brand positioning, future growth, and enterprise culture and values. More importantly, CVC's investment will help South Beauty improve economy of scale and operating efficiency. She believed this partnership will bring a bright future to South Beauty.
CVC Capital Partners mainly invests in consumer retailing, dining, medical, finance, and education sectors. In 2013, media reports revealed that CVC planned to acquire a 69% stake in South Beauty for about USD300 million; while Zhang would hold the remaining 31% stake. However, South Beauty denied the news.
By October 2013, South Beauty had reportedly developed newly 80 owned restaurants in 24 cities in China.