McDonald’s Corp. has agreed to sell its restaurants in Russia to existing licensee Alexander Govor, the company said Thursday.
The Chicago-based McDonald’s, which temporarily closed its Russia restaurants in March after the country invaded neighboring Ukraine, said Govor would acquire the entire portfolio and reopen the restaurants under a new brand.
At the end of 2021, the company had 847 locations in the country and 15% were franchised units.
Terms of the deal were not disclosed, but McDonald’s earlier indicated it would book a charge of $1.2 billion to $1.4 billion, which reflects a write-off of net investment in Russia and recognition of foreign currency translation losses.
Gover has licensed McDonald’s units since 2015, the company said, and has operated 25 restaurants in Siberia.
The agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks, McDonald’s noted.
In addition, it said the sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms.
“The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities,” McDonald’s said in a statement.\
McDonald’s has more than 39,000 locations in more than 100 countries, with about 95% of them licensed or franchised.
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