A new partnership between Carlyle Group and McDonald’s Corporation will become the largest McDonald’s franchise outside the United States, with a value of over USD2bn. It includes the opening of over 1,500 restaurants in China and Hong Kong over the next five years.

According to the partnership, Carlyle is responsible for McDonald’s businesses in mainland China and Hong Kong for a term of 20 years.

The total consideration payable by the new company to acquire McDonald’s mainland China and Hong Kong business is up to USD2.08bn. This will be settled by cash and by new shares in the company issued to McDonald’s. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald’s will have interests of 28% and 20%, respectively.

The partnership will use its combined expertise and resources to accelerate growth in McDonald’s business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.

McDonald’s CEO Steve Easterbrook said: “China and Hong Kong represent an enormous growth opportunity for McDonald’s. This new partnership will combine one of the world’s most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success.”

CITIC Limited is China’s largest conglomerate operating domestically and overseas, with businesses in financial services, resources and energy, manufacturing, engineering contracting and real estate as well as others.

Founded in 2002, CITIC Capital is an alternative investment management and advisory company.