Burger King UK owners mull GBP 600m listing – report

Discussions are understood to be taking place between Burger King UK and investment banking teams at Numis and Investec prior to an imminent appointment, the report said, without attributing the information to a source.

The IPO plans are thought likely to be formalised within days and it is possible a sale could be explored simultaneously in a dual-track process, the item continued.

Burger King UK reportedly generated GBP 117m in sales last year and GBP 101m sales in 2019. The company's revenues have been boosted by increased takeaway sales during the Covid-19 crisis and management believes it can leverage further opportunities on the high street and via drive-through sites, the report added.

An individual cited in the report suggested Burger King UK could achieve a valuation of between GBP 500m and GBP 600m.

Bridgepoint acquired UK-based Burger King franchisee Caspian UK Group as part of a management buy-in, and secured the exclusive rights to the Burger King brand in the UK in 2017.

Financial details of the transaction remained undisclosed, though Unquote reported at the time that Bridgepoint agreed to pay more than GBP 50m for the overall transaction. The GP drew capital from Bridgepoint Europe V, a EUR 4bn fund that held a final close in March 2015 and usually targets businesses with enterprise values of EUR 150m–600m.

The deal saw Bridgepoint take a controlling stake in a new Burger King UK holding company with a 20-year master franchise agreement, with franchiser Restaurant Brands International taking a minority stake in the newco via its Burger King Europe affiliate.

A few months later, Bridgepoint also bought a significant minority stake in the French franchise of Burger King from Groupe Bertrand.

As reported by Unquote, PE-backed IPOs reached a seven-year high in 2021, with USD 25.3bn in deal value generated across 41 listings – including that of Bridgepoint itself – according to data from Dealogic.

The pipeline for confirmed and potential sponsor-backed listings includes Sisal, backed by CVC, which was recently reported as having appointed advisers to prep for a 2022 IPO; Inflexion-backed Marley, which announced its intention to float in mid-September; and Carlyle- and GIC-backed Nouryon Chemicals, which filed its prospectus earlier this month.

Click here to access the latest European IPO Pipeline, which offers a list of IPO-related intelligence covered by Mergermarket over the past month

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