BDB Pitmans advises QSR industry specialist, Karali Group, on sale to Burger King UK

BDB Pitmans has advised the owner and manager of QSR industry heavyweight Karali Group Limited, Salim Janmohamed, on the sale of Karali Ltd and Karali Leisure Ltd (Karali) to Bridgepoint backed Burger King UK (BKUK) for an undisclosed sum. The indirect acquisition will make BKUK, the master franchisee for the UK, the owner of in excess of 50% of the country’s existing Burger King outlets as it consolidates these franchises into its centrally managed portfolio. Karali employees will transfer to the core team at BKUK.

Founded in November 2017 and run by CEO Alistair Murdoch and CFO Tim Doubleday, BKUK was formed after private equity firm Bridgepoint purchased rights to the brand in the UK and acquired its major franchisee, Caspian UK.

The acquisition included 36 Drive-Thru, 9 In-Line, 27 shopping centre and 2 leisure restaurants. This latest deal will increase the number of BKUK’s directly-owned locations to 266, including sites in London, Liverpool, Manchester, Birmingham and Leeds.

As a long time franchisee of Burger King fast food restaurants, Karali is the second largest Burger King franchise operator in the UK, operating over 70 restaurants. The deal was a complex transaction which involved 74 different properties and related franchise agreements.

BDB Pitmans have represented Karali since its incorporation in 2007. The team was led by corporate partner Philip Weaver and real estate partner Bhaminee Sharma with support from partners Alex Barnes, Tim Clark, Brian Gegg and Stephanie Perry. Tim Armstrong, co-leader of PwC’s practice in the South East, and his team also provided advice to Karali.

Travers Smith acted for the buyer, with Deloitte providing additional advice.

Salim Janmohamed, Owner and Managing Director at Karali, commented: “Karali is proud of the balanced portfolio it has been able to pass over at the end of our long-standing relationship with the Burger King brand. The business is resilient and enjoys a loyal customer base, with the success the stores have arising as a direct result of the team’s hard work and dedication over the last decade. We would like to thank BDB Pitmans for its expert legal guidance and for the efforts of its dedicated team in bringing this complex deal to a successful conclusion.”

BDB Pitmans partner Tim Clark concluded: “We were pleased to support Salim on another successful transaction. It has been an honour to advise the group on various acquisitions over the course of our 16 year relationship and to help the business grow. We look forward to working with Salim as he embarks on exciting new investment opportunities.”