UK - Buyout houses ready for Prêt

Advent International, Bridgepoint and Morgan Stanley are all reported to be preparing bids for UK sandwich chain Prêt a Manger. However, the £400m-plus price tag on the asset is unlikely to be realistic, owing not only to market wobbles but also to a lack of real international expansion opportunity, a source close to the deal has revealed to unquote”. “It has not taken off (in New York) as expected. Outside the UK, a boxed sandwich equals ‘not fresh’,” the source said. The three remaining bidders – Lion Capital and Iceland’s FL Group are reported to have dropped out – are likely to pay well below the asking price, meaning the vendors could pull the sale altogether. The founder-owners may re-invest sale proceeds back into the business in an effort to woo potential buyers.