Investec, SC Lowy fire up Gaucho stake sale via Clearwater

The business, which operates 20 restaurants, predominantly in the UK under the Gaucho brand, generated around GBP 53m revenue and GBP 9.8m operating EBITDA for 2021, according to its most recent Companies House filing. The compares to revenue of GBP 29.6m and EBITDA loss of GBP 2.4m from the previous year.

The business was impacted by COVID-19 in both 2020 and 2021, but when it was able to open, trade was robust and revenues in H2 2021 were 30% above the same period in 2019, the filing states.

Premium restaurant chains like Gaucho have historically traded at multiples around eight to 10x EBITDA prior to the pandemic, although the gloomy economic environment may affect its current valuations, one of the sources said.

Investec and SC Lowy saved the group from administration in 2018 when it was undergoing administration procedures, as reported by Unquote sister publication Mergermarket.

Gaucho’s coming to market coincides with rumours that fellow steakhouse chain Hawksmoor is exploring a sale, which its CEO denies, as reported by Mergermarket. Hawksmoor sponsor Graphite has appointed Stephens to explore the US market, according to a previous report in the British press.

Clearwater, Rare Restaurants (the parent company of Gaucho), and the management team of Rare Restaurants declined to comment. Investec and SC Lowy did not respond to requests for comments.

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• UK / Ireland
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