Lyceum buys EAT from Penta Capital

Greg Gille
@unquotenews
30 March 2011

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Lyceum Capital has acquired a controlling stake in UK takeaway food chain EAT from Penta Capital.

Although the deal value was not disclosed, earlier reports valued EAT at around £100m.

The company's founders and management will retain a substantial stake in the business following the transaction. HSBC arranged debt facilities to finance the acquisition.

Lyceum was impressed by the company's performance over the past two years. It also believes EAT is ideally positioned to benefit from the gradual recovery in consumer confidence. It will now look to accelerate EAT's store rollout program across the UK.

Penta Capital acquired a significant minority stake in EAT as part of a £39m refinancing of the company in 2005. The acquisition of the stake from 3i also included an £18m debt facility provided by Barclays Capital.

Penta had already put the business up for sale in 2008, attracting interest from Advent International and Morgan Stanley Private Equity – however, the global financial crisis prevented a deal from materialising.

Founded in 1996, EAT offers a range of soups, sandwiches, salads and hot drinks freshly prepared in-house every day. The company operates out of 110 branches – up from 45 at the time of Penta's original investment. Turnover has also grown from £29.1m to £85m over the past five years.