UK - Core backs MBO of Blanc Brasseries

Guy
02 March 2006

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Core Growth Capital, the generalist private equity partnership and manager of Core VCT I, II and III, has backed the ТЃ6m equity raising in the ТЃ10m MBO of Blanc Brasseries, the French brasserie chain founded by Raymond Blanc and managed by Loch Fyne Restaurants (LFR). The funding will enable the management to expand the Blanc Brassiere concept from its current five outlets to twenty by 2009.

Core Growth Capital has invested £3m from Core VCT I, II and III alongside the LFR management team while additional EIS qualifying funds will be raised through KBC Peel Hunt.

The team behind the successful development of Loch Fyne Restaurants, Mark Derry and Ian Glyn along with renowned chef Raymond Blanc will be joined by John Lederer, formerly of Groupe Chez Gerard and Masala Zone, who will assume the role as managing director.

Stephen Edwards, partner at Core Growth Capital, explained: 'We have backed this management team before and they have a record of delivering significant value growth for investors. The operating disciplines they will bring to Blanc Brassieres will make this into an attractive, defensible and highly profitable business in a part of the dining-out market that has not historically been well served by multiple site operators.'

He added: 'This is exactly the type of business we look to invest in with the Core VCTs – established, proven businesses with able management teams and where Core can work closely with the team and take a substantial and influential stake in the business.'

Patrick Booth-Clibborn, director, Corporate Finance and Head of Tax Efficient Products at KBC Peel Hunt commented: 'Since KBC Peel Hunt set up an early-stage advisory and tax-efficient investment product unit in January, this is the second investment opportunity that we have selected for our clients. Blanc Brassieres gives private and tax-based institutional investors the opportunity to invest in a business with a proven management team and an established business model. Following on from the successful exit for investors delivered by the LFR management, we feel that the demand from EIS investors for this issue will be high. This is doubly so considering that LFR won EIS Exit of the Year in 2005. I am also delighted to be working with Stephen Edwards again and Core Growth Capital, which has been instrumental in making the MBO happen.'