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Durrant Pate/Contributor

A Jamaican consortium led by the local holding company, Norbrook Equity Partners Limited has acquired 79 Kentucky Fried Chicken (KFC) and Dairy Queen restaurants in Panama from Franquicias Panameñas, S.A. referred to as FranPan.

The other partners in the consortium are Sygnus Deneb Investments and FirstRock Private Equity. This transaction establishes Norbrook, as the exclusive franchisee for both brands in the Central American country while marking a significant milestone for FranPan, a 60-year-old family-run operation.

This family-operated entity was once the largest fast-food franchise operator in Panama with over 200 restaurants across various brands, including KFC, Dairy Queen, Taco Bell, Pizza Hut, Quiznos, Pizza, and Chili’s. Founded by Edward Henriquez in 1972, FranPan has an illustrious history in Panama as the market leader in fast food restaurants.

The special purpose vehicle used to acquire the KFC and DQ restaurants and franchises is the newly formed Platinum Brands, S.A., a Panamanian company in which Norbrook Restaurant Group will hold a 60 per cent stake with FirstRock, Sygnus, and the Henriquez family holding the remainder. 

Financing the acquisition

The acquisition of FranPan was supported with bank financing from JMMB Bank (Jamaica), a long-standing financing partner to Norbrook, including its acquisition of Grupo Alaska in the Dominican Republic. Additionally, BAC International Corporation, a leading commercial banking group in Central America, provided Platinum with acquisition financing, treasury management, transaction services and the cash management services required to support the company’s restaurant portfolio.

Norbrook executive chairman and founder, Khary Robinson will be the executive chairman of Platinum Brands, S.A. and will work directly with an exceptional operating team, including Juan Carlos Andrade (CEO) and Christian Sturla (CFO). Both Juan Carlos and Christian have over 50 years of combined experience managing more than 1,000 fast-food restaurants between them. 

They have managed a vast array of fast-food brands in the region, including KFC, McDonald’s, and Pizza Hut in large Latin American markets such as Guatemala, Argentina, and Mexico and they bring with them a broader team of managers to create uniquely positioned management capacity for Platinum Brands

Robinson says, “This acquisition aligns with our vision for strategic investments in businesses with immense growth potential in the broader region of the Caribbean and Latin America. As Jamaicans, we are proud to further the reach of our capital and operational talents while continuing to work with strategic partners who share our values and approach to creating long-term, sustainable value.” 

Push for restaurant QSR platform in the region 

The overall team of directors, stakeholders, franchisors, and managers all agree that this is a unique opportunity for Norbrook to start with a strong foundation in Panama as a first step to establishing a meaningful and scaled quick-service restaurant (QSR) platform in the region. 

Juan Carlos Andrade, the newly appointed CEO of Platinum Brands shared, “We are committed to enhancing the rich legacy of KFC and Dairy Queen in Panama and, together with our esteemed partners, steering them and possibly other brands towards becoming regional leaders. We joined Platinum Brands because of the undeniable dedication that the Norbrook team has to foster innovation, excellence, and lasting value and we are excited to be on this journey with Khary, Garth, and all the stakeholders who are supporting us in this endeavour.” 

Principals commend acquisition

Robinson commended the acquisition, saying, “We are excited about the opportunity to lead the growth of these legendary franchises in Panama. Our collaboration with our investment partners as well as our newly appointed management team brings a wealth of experience and expertise to the table, strengthening our position to drive these brands to new heights.”

For his part executive chairman and co-founder of FirstRock Private Equity, Ryan Reid shared his perspective on the venture, stating, “FirstRock Private Equity is proud to be part of this strategic investment in the Panamanian market. We believe in the potential of KFC and Dairy Queen to thrive under the leadership of the Norbrook team, and we look forward to contributing to the success of these iconic brands in the region.” 

Sygnus Capital co-founder and chief operating officer, Dr. Ike Johnson, also remarked on the acquisition, saying, “At Sygnus Deneb, we understand that true growth and value creation stem from strategic partnerships and a shared vision. Our recent collaboration in the acquisition of KFC and Dairy Queen franchises in Panama exemplifies our commitment to investing in businesses throughout the Caribbean. By partnering with Norbrook, we are supporting the expansion of these famed brands and delivering sustainable returns for our investors.”

Liza Henriquez, spokesperson for the family-run business, expressed enthusiasm about the acquisition, commenting, “We are delighted to have found in Norbrook and its management team people who share our values and understand the potential of KFC and Dairy Queen in Panama. This transition allows us to focus on our legacy while entrusting the future of these beloved brands to capable hands.” 

During the pandemic, the family decided to transition away from day-to-day business operations, providing Norbrook with a unique opportunity to take the reins of the business and drive the expansion and growth of its two most iconic brands in Panama.