Americana, also known as Kuwait Food Co., has reportedly abandoned plans to sell a majority stake to Gulf investment group Adeptio.
According to Reuters, the parties were unable to “reach agreement on mutually acceptable terms”.
Americana and Adeptio first struck a deal that would have seen the Dubai-based investment group take a 69% stake in the business in February. The majority stake is owned by the al-Kharafi family. Adeptio had agreed to acquire the 69% stake subject to due diligence and then indicated it would then launch a mandatory takeover offer for the rest of the company.
Speculation the al-Kharafi family was looking for a buyer began in April 2014. In January last year, Kuwait Food Co.’s majority shareholder, Al Khair National for Stocks and Real Estate Co., owned by the al-Kharafi family, confirmed the company was still in talks with “several parties” regarding a sale of its stake after media reports claimed a sale was close to being put on hold as talks were faltering, partly due to differences on price. Media reports since 2014 had suggested Saudi’s Savola Group and private-equity firms KKR and CVC had all expressed interest in the company.
Americana manufactures frozen foods including California Garden beans and Farm Frites, as well as being a franchise operator of some restaurants including Yum! Brands’ KFC and Pizza Hut.
Neither Americana nor Adeptio responded to requests for comment.