3i and RCP exit Giraffe to Tesco

3i, which originally invested £10m in Giraffe alongside existing investor Risk Capital, has made a 1.6x return on its investment from the trade sale to Tesco while RCP reaped an 8x money multiple. Giraffe doubled its original enterprise value of £24m over 3i's six year holding period.

Previous investment
3i invested in Giraffe in October 2006, entering a co-investment with Risk Capital Partners, which first backed the business in 2004. The GPs aimed to support the management's plans for a rapid roll-out of the restaurant chain across the UK. The capital enabled Giraffe to grow from its London base to a nationwide presence, raising restaurant numbers from 11 to 48 sites, including one overseas site in Dubai's new airport terminal.

3i introduced Stuart Rose to the business as non-executive director, alongside existing chairman and founder of RCP, Luke Johnson. Rose was previously deputy chairman of Body Shop International and chairman of Agent Provocateur.

The GPs also helped Giraffe access improved debt facilities to support the roll-out, build its management infrastructure and improve its portfolio analysis and returns.

Company
Giraffe is a restaurant business founded in 1998 with the opening of a first restaurant in Hampstead. The business has grown over the past few years and now includes the core Giraffe restaurant chain in high streets, shopping malls and leisure developments, the Giraffe Burgers & Cocktails brand and seven sites in transport hubs.

People
Justin Maltz is a director at 3i. Luke Johnson and Ben Redmond led the deal for RCP.

Advisers
Vendor – PwC, Sean Williams (Corporate finance). 

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• Topics
• Exits
• UK / Ireland
• Consumer
• 3i
• United Kingdom
• Risk Capital Partners
• Trade sale