Announced
Completed
Financials
Tags
Private
United Kingdom
Acquisition
Restaurants and Bars
noodle chain
Completed
Private Equity
Synopsis
The Restaurant Group plc announced that it has conditionally agreed to purchase the entire issued share capital of Mabel Topco Limited, the holding company of a group that owns and operates the Wagamama restaurant business for a cash payment of £357m from private equity groups Duke Street and Hutton Collins, Enterprise Value of £559m. The transaction implies EV/EBITDA LTM multiple of 13.2x (pre-synergies) and 8.7x (post £15m cost synergies and £7m site conversion synergies). Wagamama has a strong competitive advantage as the only UK pan-Asian brand concept with scale, having more than three times the sales of the next largest branded UK operator in Asian cuisine, a category that is fast growing and fragmented. "The Wagamama deal not only gives us a great brand but also creates a business with a multi-pronged growth strategy which will enhance earnings." Andy McCue, The Restaurant Group CEO.
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