Gresham backs secondary buy-out
Article Date: Apr 19 2007Town Centre Restaurants (TCR), which has more than 50 outlets across the UK, has been bought by its management in a secondary buy-out after it secured a funding package worth tens of millions of pounds.
The value of the deal has not been disclosed but a £48 million package was provided to cover the acquisition cost and fund future development. The funding was led by private equity firm Gresham, which has taken a majority shareholding in the business, with Clydesdale Bank providing debt.
The buy-out team, led by chief executive Mark Winter and finance director Ron Sutcliffe, also invested in the deal but have reduced their shareholding from a majority to a minority stake. The business was sold by HBOS IF, which backed the original buy-out at the company in 2003.
Gresham was led by director Christian Bruning, who was supported by Neil Scragg, Mike O’Brien and Simon Hemley. Bruning and Scragg have joined TCR’s board with Richard Simpson appointed chairman. Simpson was head of Individual Restaurant Company, which Gresham exited in November for £41 million, a return of 2.3 times its investment.
Bruning told M&A that there are several reasons why the firm backed the deal. “It has a strong management team that has delivered on its plan in the past three years and has set the business up as a good platform for growth. They have invested in their existing sites and we have put in place the package to roll out another 40-odd sites in the next four years.”
TCR trades under three brands; Café Giardino, Auberge and Azzurro. Café Giardino is its largest operation with more than 40 outlets servicing pasties and pasta dishes, with Auberge, nine units, and Azzurro, four outlets, are contemporary bar/restaurants serving Italian and French cuisine.
This story is from Growth Company Investor, the independent voice on fast-growing companies. Subscribe today for the latest AIM recommendations.
