Private equity's beefiest burger buyouts

Private equity's fondness for restaurant investments seems to know no bounds as the streets team with casual dining chains eaten up by the industry.

Notable deals include Capricorn Venture's Nando's, Gourmet Burger Kitchen and Real Greek; Duke Street's Wagamama; Quilvest's Yo! Sushi; Livingbridge's Pho; and Rutland's Pizza Hut.

Even at the most casual end of the eating-out sector the asset class is dominant, with Bridgepoint's Pret A Manger, Lyceum's Eat and YFM's Bagel Nash.

On National Burger Day, unquote" takes a look back at our favourite private equity deals in this particular fast-food niche.

Active Private Equity: Honest Burgers
Date: January 2015
Value: £7m
Location: London

In January this year, Active injected £7m into a relative newcomer on the burger scene: Honest Burger. The deal saw the GP picking up a 50% stake with the founders retaining the balance.

Founded in Brixton Village in 2011, Honest Burger currently operates nine restaurants in London. The company was set up by Dorian White, Tom Barton and Philip Eeles, who met when working together at a restaurant in Brighton and started out by selling burgers at festivals and events.

Hutton Collins: Byron
Date: October 2013
Value: £100m
Location: London

Hutton Collins acquired high-end burger chain Byron in October 2013 from restaurant business Gondala Group, which at the time was backed by Cinven. The deal came after much private equity interest for the burger chain, with bids reportedly coming in from Lord Jacob Rothschild's RIT Capital Partners, French private equity house Quilvest, TDR Capital and Searchlight Capital Partners.

Founded in 2007, Byron is headquartered in London and, at the time of Hutton Collins' takeover, employed 750 staff. The company operated 34 restaurants back in 2013, focused on producing high-quality hamburgers, and has expanded rapidly since the investment, now counting 51 location in total, 37 of which are in London. The company has a further three soon to be opened.

Gourmet Burger Kitchen: Capricorn Ventures
Date: September 2010
Value: £30.4m
Location: London

In September 2010, Portuguese-themed chicken restaurant chain Nando's, which is backed by Capricorn Ventures, acquired Clapham House, the owner of Gourmet Burger Kitchen (GBK) and The Real Greek in a deal worth £30.4m.

At the time of the deal, GBK operated 53 restaurants in the UK and a further 14 overseas. However, it was suffering from volatile weekly trading performance as the financial downturn continued to cause consumer woes. GBK now counts 65 sites in the UK with franchises in Ireland, Dubai, Greece and Oman.

The company was founded in 2001 by New Zealanders Adam Wills, Greg Driscoll and Brandon Allen.

TGI Fridays: Electra Private Equity
Date: December 2014
Value: £225m est.
Location: Luton

Not exclusively focused on burgers, but the American diner-style chain does offer a decent selection of beef buns including the Bruce Lee Burger and a Double Glazed Jack Daniel's Burger, as well classic cheeseburgers and a BBQ pulled-pork offering.

In December 2014, Electra invested £100m in the buyout of the UK-based franchise of TGI Fridays, in a deal that reportedly valued the company at £225m. The buyout was supported with debt from ICG and Barclays.

Founded in New York in 1965, TGI Fridays is a chain of American-themed restaurants and cocktail bars. The business has 66 UK restaurants in city centres, shopping malls and leisure parks.

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• Topics
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• Buyouts
• Burger buyouts
• Electra Partners LLP
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