CHICAGO — Chicago-based City Capital Ventures, LLC (CCV) has acquired Toronto-based Redberry Group — the largest Burger King franchisee in Canada, which boasts 111 Burger King restaurants, as well as 23 Pizza Hut locations.
“We’re thrilled to be acquiring two iconic restaurant brands in the highly attractive Canadian QSR market,” says Dan Kipp, co-founder and managing partner of CCV. “The Burger King brand is underpenetrated in Canada relative to other QSR burger brands and we see a compelling opportunity for expansion. Similarly, Redberry has a strong Pizza Hut presence in Alberta, with a base of nicely profitable units. The opportunity to continue to develop new units in the market is quite attractive to us.”
CCV has engaged Spencer Stuart to assist in conducting a search for a new CEO for Redberry. The leadership team at Redberry will continue with the company. CCV is also partnering with Gary Graves — an experienced retail and restaurant executive and former chairman of Caribou Coffee — who will become chairman of Redberry.
“We are highly impressed with the current management team and excited for them to be our partners in accelerating Redberry’s growth in Canada and delivering superior operating results,” says Graves. “Redberry’s experienced and effective management team, which has been in place since 2014 and, combined, brings over 100 years of relevant QSR-industry experience, provides the foundation for our organic growth.”
Kipp will join Redberry’s board of directors pursuant to the transaction, as will Rob Selati, president of Chicago-based Saxonwold Capital, which will be an investment partner of CCV’s in this transaction.
The sale of Redberry is supported by both Burger King and Pizza Hut.