EQT is pleased to announce that the EQT Mid Market fund (“EQT Private Equity”) has completed the sale of its stake in CFB Group (the “Company”) to Fountainvest Partners. The transaction was closed on 30 December 2021.

Headquartered in Shanghai China, CFB Group is a leading multi-brand food and beverage platform operator in China with over 1,100 stores. The Company was founded in 2003 and in 2013 EQT Private Equity acquired a majority stake in the franchise operator.

During EQT Private Equity’s ownership, CFB Group has evolved from a two-brand master franchisee in China to a multi-brand food and beverage platform operator with a diverse portfolio consisting of both proprietary and franchised brands, including Dairy Queen, Papa John’s, Brut Eatery, XiaoMian and San Dao Ru Chuan. On top of its original direct-own model, the Company successfully diversified its strategy by expanding its sub-franchise model and doubling its number of stores from around 500 to more than 1,100. Today, CFB Group is the world’s largest franchisee of Dairy Queen and one of the largest franchisees of Papa John’s outside the United States.

Under EQT’s value creation strategy, the Company completely digitalized its front-to-back-end operations which significantly improved its operational efficiency. Moreover, through digital marketing and by utilizing Chinese social media platforms, CFB Group successfully enhanced its brand value and drove more traffic to both its offline stores and its online platforms.

Jerry He, Partner within EQT Private Equity’s Advisory Team and Head of China, said, “We are pleased to have found a good partner for CFB Group for what we believe will be an exciting next phase of its journey. The Company has transformed significantly and become a leading food and beverage platform operator in China during EQT’s ownership. We are proud of the accomplishments achieved by an outstanding management team led by Alan Hsu, especially the swift actions in response to COVID-19 and the impressive performance during this difficult period. We thank Alan and the entire management team, all the employees and the board for their vision, dedication and contribution. We are confident that CFB Group will continue to be successful under its new ownership.”

Alan Hsu, CEO of CFB Group, said “We would like to thank EQT and the entire team for their trust, support and guidance. EQT has been a great partner and instrumental in CFB Group’s journey over the last few years, building the business together with the management team encompassing business model transformation, brand portfolio expansion, digitalization and sustainability development. These efforts positioned CFB Group well and enabled us to join forces with our new partner for the Company’s next phase of growth and transformation. Personally, I also cherish the friendships that we have built over these years.”

Contact
Asian media inquiries: Mavis Ma, Communications Manager, +852 9280 9663
International media inquiries: EQT Press Office, press@eqtpartners.com, +46 8 506 55 334