Risk Capital backs Red Hot World Buffet

Karin Wasteson
27 August 2013

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Risk Capital Partners has acquired a majority stake in UK-based restaurant group Red Hot World Buffet.

The fresh capital will be used to fund Red Hot World Buffet's eighth site, which is due to open in Leicester next year.

The current management team will remain in place, with the addition of former La Tasca chief executive James Horler. Risk Capital had been in discussions with the founders regarding the acquisition of the business for three years prior to the transaction, according to the GP.

Barclays provided senior debt facilities for the transaction.

Company
Founded in 2004 by Parmjit and Helen Dhaliwal, the Red Hot World Buffet group consists of restaurants in seven cities across the UK: Manchester, Leeds, Cardiff, Nottingham, Liverpool, Northampton and Milton Keynes. The group's offering includes English, Indian, Chinese, Italian, Tex-Mex and Japanese cuisine.

Red Hot World Buffett employs 600 people and has a turnover of £22m.

People
Luke Johnson, who led the deal for Risk Capital, has been appointed chairman of Red Hot World Buffet's board. Parmjit Dhaliwal is the co-founder and CEO of Red Hot World Buffet.

Advisers
Equity - Baker Tilly (Financial due diligence); Jelf Manson (Insurance due diligence); Catalysis (Management due diligence); CMS Cameron McKenna (Legal).
Debt - DLA (Legal).
Company - BDO, Peter Hemington, Kieran Lawton, James Gregson, Nicola Gibbs (M&A, financial due diligence, tax); Pinsent Masons (Legal).
Management - JMW (Legal).