McDonald's agrees to sell Russian business to current licensee Alexander Govor
McDonald's Corporation announced its decision to exit the Russian market and has signed a sale and purchase agreement with existing licensee Alexander Govor for its Russian restaurant portfolio. Govor, who has operated 25 restaurants since 2015, will run these under a new brand. The agreement is pending certain regulatory approvals, with expected closing in the coming weeks. Employees will be retained for at least two years, and the buyer will cover salaries and existing liabilities until the deal closes.
- McDonald's is transferring its Russian operations to an experienced licensee, which may ensure operational continuity.
- Employee retention for at least two years indicates a commitment to workforce stability during the transition.
- Exiting the Russian market may lead to revenue losses and impact overall financial performance.
CHICAGO, May 19, 2022 /PRNewswire/ -- Following its announcement that it will exit the Russian market and has initiated a process to sell its Russian business, McDonald's Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor. Under this agreement, Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand. Since 2015, Mr. Govor has served as a McDonald's licensee 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.
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.
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SOURCE McDonald's Corporation
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