The Dubai-based investment firm acquired a 40% share in the franchise business for $50m in April 2020
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A Tim Hortons store at Sharjah Airport, UAE | Photo credit: Sam Riz
UAE-based private equity firm Gateway Partners is reportedly in talks to sell its 40% stake in Tim Horton’s Middle East franchise.
Canadian coffee chain Tim Hortons entered the Middle East in 2011 with a store in Dubai, UAE, as part of a franchise agreement with retail conglomerate Apparel Group.
Gateway Partners acquired a 40% stake in the franchise in April 2020 for $50m and formed a new joint venture, AG Café, with Apparel Group. Tim Hortons’ presence in the Middle East has more than doubled since Gateway Partners’ investment to reach more than 330 stores across six markets.
The investment firm is currently working with French financial services holding firm BNP Paribas SA on the sale of its minority stake, according to Bloomberg, with non-binding bids expected in the coming weeks.
AG Café also licenses Tim Hortons in India, where it has opened 33 outlets since debuting in New Delhi in August 2022.