Mon, 02 Aug 2010 | BUSINESS SALE
The hugely successful Pan-Asian restaurant chain Wagamama is being put up for sale by its private equity owner, Lion Capital.
Wagamama, which has grown popular for its quick and tasty noodle and soup dishes, opened its first restaurant in 1992. It has since expanded to 105 outlets - 66 in the UK, employing 2,300 people and a further 39 branches overseas.
Lion Capital, which bought an 88 per cent stake of the business for £102 million in 2005, is hoping the current price tag will be around the £250 million mark. Rothschild, the investment bank, is currently advising Lion Capital on the sale process.
Wagamama's most recent annual report showed that its sales for the year to April 2009 rose 13 per cent to £101 million. Directors said the firm had “considerable potential for growth” over the long term but warned of short-term weakness in consumer spending.
Back in 2007, Rothschild was involved in the initial public offering attempt before it was dropped due to the credit crunch.
Wagamama has changed hands several times since it was founded by restaurateur Alan Yau. Yau sold to Graphite Capital and entrepreneur Rory McCarthy in 1998, before Lion bought its majority stake in 2005. Employees own the rest of the business. Senior staff, including chief executive Steven Hill, will be in for a multi-million pound windfall should a sale go ahead.
This is a unique opportunity to acquire two well-established B2B companies operating across multiple sectors throughout the UK, boasting strong client relationships and secure contracted revenues poised for further expansion.
LEASEHOLD
This is a unique opportunity to acquire a prominent company in a specialist sector with a high barrier to entry, offering integration potential and a cash-generative model with repeat revenue.
This business presents an enticing opportunity with established relationships with blue-chip organisations globally, a strong client retention rate, and the potential for relocation.
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