LDC backs £50m MBO of D&D

LDC bought the 18% stake previously held by London-based Caird Capital and the 51% held by Conran Holdings Ltd. D&D's management will retain its 31% stake.

The leveraged transaction will allow the restaurants group to fund domestic and international expansion, as well as invest in its existing portfolio of businesses.

Previous funding
In 2006, Bank of Scotland Corporate (which was later renamed Caird Capital) invested £47m in the restaurant group, which was previously named Conran Restaurants. According to unquote" data, Bank of Scotland provided the funding as an integrated debt and equity package, with roughly £28m of debt.

The deal allowed the existing management team to invest new cash into the business, which increased its equity stake to 31%. Previous vendors Conran Holdings retained a majority stake in the company.

Company
D&D London, formerly Conran Restaurants prior to the buyout in 2006, was founded in 1991. The restaurant group first opened a series of restaurants in London before expanding to a selection of international cities including Tokyo, Paris and New York.

D&D currently owns and operates 34 restaurants worldwide with yearly aggregate revenues of roughly £75m.

Last year the group gained a foothold in London's hotel market by opening the £50m, 80-room South Place, a luxury boutique hotel in the City of London.

People
Des Gunewardena will remain chairman and CEO of D&D, while David Loewi will stay as managing director. Simon Sherwood from LDC was appointed a non-executive chairman of D&D's new holding company.

Advisers
Equity – Lincoln International (Corporate finance); Linklaters (Legal); Parthenon (Strategic due diligence); Davies Coffer Lyons (Property due diligence); AON (Insurance due diligence).
Company – Rothschild (Corporate finance); Olswang (Legal); Alvarez & Marsal (Financial due diligence).

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• Topics
• Buyouts
• Consumer
• UK / Ireland
• United Kingdom
• Caird Capital
• LDC