Allied Domecq, the UK drinks giant, is reported to be interviewing bankers and analysts ahead of choosing an advisor to help offload Dunkin’ Donuts, and possibly the rest of its non-core operations.
An Allied Domecq spokesman said he was unaware of any formal process to sell Dunkin’ Donuts, although there has been speculation for several years that Allied would look for an exit at some stage.
Rumours abound that Pernod-Ricard is looking at Allied as a possible takeover target, and a sell-off of non-core businesses, including Dunkin Donuts and possibly its minority stake in Britvic, would unlock shareholder value and free up capital.
One source claimed Allied hoped to sell Dunkin Donuts at roughly a 10 times ebitda as opposed to spinning it off but this figure was described as “hopeful” by a restaurant industry banker.
Yum!, the owner of KFC and Pizza Hut; and Wendy’s International, which operates Canada’s largest doughnut chain, have been cited as possible buyers, in addition to Texas Pacific, the group which acquired Burger King from Diageo.
Allied could use the funds generated by a sale to fund a merger with Bacardi, according to one speculator.
