Private equity firm Gateway Partners purchased a stake in the Tim Hortons Gulf franchise from the Apparel Group, which owns and manages the coffee chain in the region.
Apparel Group's chairman Nilesh Ved confirmed Gateway's investment, following a report by Reuters, but declined to reveal the value or size of the deal when contacted by The National on Saturday.
The company will use the proceeds from the transaction to grow the business, Mr Ved said in an emailed statement, without elaborating on the details.
Gateway Partners, which is led by former Standard Chartered banker Viswanathan Shankar, reportedly paid about $50 million (Dh183m) for a 40 per cent stake, Reuters reported last week citing sources.
The private equity firm made the investment in the franchise through its Gateway Fund I in February 2020, according to its website, in which it describes the franchise as "the leading Tim Hortons franchise outside of North America with 141 stores" by the end of 2019 across the Middle East.
Gateway's investment will help Apparel Group expand the coffee chain in Egypt and India as well as in the Gulf markets, Mr Ved told Reuters.
The Apparel Group has more than 1750 stores and 75 brands across all platforms employing 17,000 people, according to its website. It operates fashion and lifestyle brands including Tommy Hilfiger, Charles & Keith, Juicy Couture, Skechers, Nautica, Aldo, Nine West, Aeropostale, Tim Hortons, Cold Stone Creamery, Inglot and Rituals.
The conglomerate has a presence in markets including UAE, Kuwait, Bahrain, Oman and Saudi Arabia and has "clear strategies" in place to enter emerging markets such as Hungary, Pakistan, Egypt and Philippines, according to its website.
The Covid-19 outbreak has resulted in cafes and restaurants in Gulf countries shutting down for dine-in, as part of efforts to contain the virus, but many still operate delivery services.
Mr Ved told Reuters that six or seven Tim Hortons outlets remain open for deliveries to customers in Dubai and 15 are doing business in Saudi Arabia, through the use of third party delivery apps.
