Mayfair sells stake in YO! Sushi parent company in USD 621m trade sale

Min Ho
14 June 2023

Tweet
Facebook
LinkedIn
Google plus
Send to

Mayfair Equity-backed UK-based Japanese foods group Snowfox is to be acquired by Japanese food services peer Zensho Holdings in a deal valued at USD 621m.

The terms of the transaction for the group are to be confirmed and completion remains subject to customary closing conditions, according to a statement. The deal includes four brands, namely UK Japanese restaurant chain YO!, US sushi kiosk business Snowfox, Canada-based grab-and-go sushi group Bento and UK-based food manufacturer Taiko.

Mayfair had originally sought a potential IPO for the foods business, targeting an autumn 2022 listing with a valuation tag of around GBP 750m-GBP 850m, Unquote sister publication Mergermarket reported last April. However, the bearish stock market sentiment hit the process, as previously reported, and the GP subsequently turned its attention to a sale for the company, Mergermarket reported in July last year.

Under the GP's ownership, YO! Acquired Bento in 2017, followed by Taiko in 2018. In 2019, it expanded into the United States via the acquisition of Snowfox. Following these transactions and under the leadership of CEO Richard Hodgson, the Snowfox Group was created in 2021, it said.

Mayfair first invested in YO! in 2015, deploying equity via Mayfair Equity Partners I, which held a GBP 400m final close in 2016, according to Unquote Data.

The remaining portfolio companies in the same 2015-vintage fund include Tour Partner Group (formerly known as Hotels & More). The GP initially planned to explore exit options for the company in 2019, Mergermarket reported previously. Fellow Fund I portfolio company Promise Gluten Free, an Ireland-headquartered gluten free bakery chain, was flagged last year by sector bankers and sources following the situation as a potential 2023 exit candidate, Mergermarket reported.

The London-based GP registered Mayfair Equity Partners III last year and has since begun to deploy the fund via the buyout of Belgium-headquartered language services technology group Jonckers. The fund's predecessor held a final close on GBP 650m in 2019.

Zensho is a major Japanese food group with operations such as beef bowl restaurant Sukiya, the 100-yen sushi restaurant Hama-sushi, and the family restaurant Coco's, among others.

Company
The Snowfox Group is a global sushi platform under four distinct brands – Snowfox, Bento, Taiko and YO! – in North America and the United Kingdom. The Group provides consumers with Japanese food and has approximately 3,000 chef-operated sushi kiosks and other restaurants in North America and the UK. The group is also a sushi manufacturer and wholesaler.

People
Snowfox - Richard Hodgson (CEO)
Mayfair Equity Partners - Waqqas Ahmad (partner).

Advisors
Vendor - DLA Piper (legal); Spayne Lindsay (corporate finance).