Grupo Franquicias Hosteleras (Entretapas) (Spain) - Dec 2007

unquote
01 December 2007

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Monitor Capital has acquired a 95% stake in Spanish restaurant and food services company Grupo Franquicias Hosteleras. The deal, reportedly worth more than €1.5m, is aimed at acquiring control over Entretapas y Vinos, a franchise controlled by the group. The buyout deal included classical Atranche debt.

Company

Madrid-based Entretapas y Vinos was founded in 2003, and most recently reported a turnover of approximately €14m with a €0.5m EBITDA. Initially, the brand possessed franchises in Madrid and throughout the country. However, most restaurants in Madrid have closed, which presents the backers with a good opportunity to re-establish the presence in the capital. Entretapas y Vinos will piggy-back on Trattorias Pinocchio, which was also recently acquired by the investor and which has a strong presence in the Spanish capital. The development strategy includes tripling the number of outlets, which currently stands at 20. This would entail the opening of nine new franchises and three company-owned outlets, these last to be located mostly in the Madrid area. The buyout house intends for one-third of the new operations to be wholly owned by the company, while the remainder would be franchises. The private equity house proposes to strengthen the Entretapas y Vinos concept and its valuequality content. The plans are to increase the company’s presence in Spain and begin positioning it internationally, with restaurants in the UK and the East Coast of the US. Similarly it projects a doubling of the sales and EBITDA within a year’s time.

People

Robert G Warfield and Margarita Garcia of Monitor Capital led the deal.

Sourced from: Southern Europe unquote" 71 (Feb 2008)