KFC, Pizza Hut India operator Devyani International to acquire majority stake in Biryani by Kilo, Goila Butter Chicken parent

Devyani International Limited (DIL) will acquire up to 80.72% equity stake in Sky Gate Hospitality Pvt. Ltd., the parent company of 'Biryani by Kilo' and other cloud kitchens such as Goila Butter Chicken. The proposed transaction values the equity of Sky Gate, excluding its Krazy Kebab Co. business and investment in Peanutbutter, at ₹519 crore, the KFC operator announced in an exchange filing.

The acquisition cost is pegged at around ₹419.31 crore for the 80.72% stake on a fully diluted basis. In addition to this, Devyani International will also pay a contingent consideration, as specified in the transaction documents.

The acquisition, which will be completed within 15 days from the date of the approval, will enable Devyani International expand its portfolio with wider offerings.

According to the terms of the transaction documents, Devyani International will acquire three brands of Sky Gate, and then the latter will transfer its brand i.e. Krazy Kebab Co. and investment in Peanutbutter (owning brand i.e. Get-A-Way), within a period of next nine months. Post the transaction, Sky Gate will become a subsidiary of the company.

As part of the transaction, Devyani will issue 2.37 crore equity shares at ₹176.78 each (including a premium of ₹175.78) to the sellers on a preferential basis. The remaining amount, including taxes and adjustments, will be paid in cash. The preferential issue is subject to shareholder approval at the Extraordinary General Meeting scheduled for May 17, 2025. The acquisition is expected to close within 15 days of receiving shareholder approval.

Devyani International is the quick-service restaurant operator behind KFC, Pizza Hut, and Costa Coffee in India. As of December 31, 2024, Devyani International operated over 2,000 stores across more than 280 cities in India, Nigeria, Nepal, and Thailand. The company is a key growth driver of RJ Corp, a multinational conglomerate with interests in beverages, QSR, retail, dairy, healthcare, and education.

“While our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavours of the much-loved Indian food to our portfolio. Our partnership with Sky Gate addresses this, bringing their exceptional brands, Biryani By Kilo and Goila Butter Chicken, into our fold,” said Ravi Jaipuria, Non- Executive Chairman, DIL, in a statement.

Sky Gate Hospitality operates a chain of over 100 outlets, including dine-in restaurants across more than 40 cities. The company owns several popular food brands such as ‘Biryani By Kilo’, ‘Goila Butter Chicken’, and ‘The Bhojan’, and operates through subsidiaries including Blackvelvet Hospitality, Say Chefs Eatery, and Peanutbutter and Jelly. For FY25 (unaudited), Sky Gate reported a consolidated turnover of approximately ₹277 crore, excluding revenue from Krazy Kebab Co. and Peanutbutter. As of March 31, 2025, its paid-up share capital stood at ₹20.23 lakh.

Shares of DIL touched an intraday high of 2.3% higher on Thursday at ₹179.75 and is currently trading at ₹175.59 on the NSE.