The Restaurant Group is set to acquire Wagamama for £357m.

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.