Little Chef sold to Kuwait-based KFG

Rcapital began to seek a buyer for the business in April this year, hiring corporate financier KPMG to manage the sale process. According to Rcapital, KFG was successful in acquiring the business due to its plans to grow the business. No private equity firms took part in the bidding process.

According to City AM, the business sold for approximately £15m. KFG will reportedly take on 81 of the chain's 83 outlets, while Rcapital will retain the remaining two.

Rcapital acquired Little Chef in 2007, after the company had entered into administration. The business has previously been owned by Permira, which bought Little Chef and Travelodge in February 2003 for £712m, according to unquote" data. According to Little Chef, Permira sold the business, a 235-strong chain at the time, to People's Restaurant Group for £52m in 2005.

KFG already owns the previously private-equity-backed bakery chain Maison Blanc and Chinese restaurant group Cha Cha Moon, as well as 40 KFC and Burger King outlets.

Little Chef was founded in 1958. The chain currently employs 1,100 staff and serves 6 million customers per year. The restaurant outlets are situated on A-roads throughout the UK.

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• Topics
• UK / Ireland
• Consumer
• Exits
• United Kingdom
• RCapital