Presto buys Wimpy Colombiana

Presto has acquired Wimpy Colombiana for Peso$2.7bil as part of a strategic advance aimed at sidestepping the fall in consumerism. The seventh leading fast-food chain in Colombia, managed by Franquicias Colombianas (Frayco), takes on seven Wimpy restaurants.

Wimpy Colombiana was created in 1976 by local investors and until this sale partners within the group included Constructora El Cairo and Inversiones Paralelo. Wimpy is a British hamburger chain dating back to 1954. The Colombian operation posted sales of Peso$3.69bil in 2007 (well down, for example, on 2005's Peso$5.618bil).

Frayco, meanwhile, registered year-2007 sales of Peso$36.376bil to rank seventh in the sector behind El Corral, Crepes & Waffles, Avesco, McDonald's, Frisby and Grupo CBC (the owner of La Brasa Roja, Cali Mio and Cali Vea).

Publication: SABI - Business News
Provider: South American Business Information
Date: September 29, 2008