Clifford Chance

Clifford Chance advises CVC on two buyouts in China's F&B sector

Acquisition of majority stakes in South Beauty and Da Niang Dumplings

Leading international law firm Clifford Chance has advised CVC Asia Pacific Limited on its leveraged buyout of South Beauty Investment Company Limited and its acquisition of a majority stake in Da Niang Dumplings Holdings Limited. Both transactions recently closed after obtaining the relevant regulatory approvals.

South Beauty Investment Company Limited operates the South Beauty (Qiao Jiang Nan) chain of full service restaurants in China, which serves authentic Sichuan cuisine in a contemporary dining atmosphere and is one of the most widely recognised and successful mid-to-high end Chinese restaurant brands, with almost 70 restaurants in China.

Da Niang Dumplings Holdings Limited operates one of the largest quick service restaurant chains in China, with over 440 stores in 19 provinces under the name "Da Niang Dumplings". The brand is a household name in China for dumplings.

Corporate partner Terence Foo who led both these transactions commented, " The F&B sector has seen a lot of interest from private equity funds, as a play on the domestic consumption market. It is one of the fastest growing segments in China, driven by increasing urbanisation, rising spending power of Chinese consumers and popularity of dining-out."

On the South Beauty transaction, Terence was supported by senior associates Zhang Hong, Bryan Koo and associates Janet Jiang  and Shi Zhonghua. The financing aspects of the transaction was led by Hong Kong partner Matthew Truman, supported by senior associates Ashley McDermott and Clara Shirota and associates Chris Psathas and Lynsey Edgar.

On the Da Niang Dumplings transaction, Terence was supported by associate Shi Zhonghua.