TPG in £303.7m Prezzo take-private

Following the deal, TPG will look to expand the chain by opening new restaurants and making "operational improvements".

The transaction values the company at 9.2x EBITDA for the 12 months to June 2014 and would see the company's shareholders receiving 126.5 pence per share.

TPG has received irrevocable commitments from a consortium of shareholders led by the Kaye family, representing a combined stake of 48.5%; and all shareholding Prezzo directors, who hold a combined stake of just less than 14%.

TPG, which made the approach via the Papa Bidco newco, stated it was attracted to the company by its brand recognition, track record of growth and the increasing popularity of the casual dining sector.

TPG has a track record of investing in food companies. Its previous portfolio companies include Burger King, Del Monte and Chobani and Ingham.

Cenkos Securities acted as broker to Prezzo during the process.

Company
Founded in 2000, Prezzo is a London-based Italian restaurant chain. The company has 249 locations throughout the UK and reported adjusted EBITDA of £31m for the 12 months to June 2014.

In 2013, the business reported total revenues of £166.5m and pre-tax profits of £20.4m. Its net assets as of December 2013 amounted to £107.2m.

People
Abel Halpern is a partner at TPG. Michael Carlton is chairman of Prezzo.

Advisers
Equity – Jefferies (Corporate finance); Barclays (Corporate finance).
Company – Altium (Corporate finance).

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