Gaucho Grill (United Kingdom) - Dec 2007

The deal was understood to have generated good returns for Phoenix. Phoenix was originally considering a flotation of the business seeking a valuation of approximately £100m or £115m including debt, but a combination of volatile markets and approaches for the business from a number of interested parties made a tertiary buyout the preferred exit route. Hawkpoint advised Phoenix on the divestment, which did not involve a formal auction process. ICG came up with a strong valuation and the business was subsequently sold.

Phoenix acquired a 45% stake in Gaucho in a £55m secondary buyout deal from Barclays Private Equity (BPE) in August 2006 (28 August 2006, page 31). The deal was supported by debt provided by Anglo Irish Bank Corporation Plc. BPE had owned Gaucho since January 2005 when it backed the company’s £23.5m buyout with debt provided by Royal Bank of Scotland (7 February 2005, page 22). During Phoenix’s ownership of Gaucho, profits grew by 50% as the business showed continued organic growth and the results from investment in three new restaurants and developed a strong pipeline of restaurants.

Advisers

Vendor - Hawkpoint Partners Ltd, Ed Arkus, Patrick Wilson (Corporate Finance)Vendor - Travers Smith LLP, Anthony Foster (Legal)

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• Topics
• UK / Ireland
• Exits
• Consumer
• United Kingdom
• Secondary buyout