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The Restaurant Group (TRG), which owns brands such as Frankie & Benny’s and Chiquito’s, has agreed to acquire restaurant chain Wagamama in a deal worth approximately £559 million.
TRG will acquire Wagamama’s holding company Mabel Topco for £357 million, and will assume £202 million in debt to finance the deal.
Wagamama will operate as an independent entity once the acquisition is completed, with TRG’s current chief growth officer Emma Woods becoming Wagamama’s new chief executive officer.
Wagamama currently operates over 200 outlets worldwide, with 158 UK-based restaurants, and TRG says that it will attempt to further accelerate Wagamama’s expansion by converting existing TRG sites into Wagamama restaurants, expanding the brand’s food-to-go offering and stepping up international expansion efforts.
TRG CEO Andy McCue said: “This transaction is an exciting and transformative opportunity to create a business which can pursue a truly multi-pronged growth strategy and create substantial value for our shareholders.
“Wagamama is a fantastic brand, with a market leading pan-Asian proposition, which has consistently outperformed the casual dining market in recent years.
“Central to this success has been a cohesive culture and clear brand values which are focused on making the right choices for customers.
“The transaction not only gives us a great brand but also creates a business with a multi-pronged growth strategy which will enhance earnings with continued selective UK rollout, accelerated via conversions of some TRG sites; by further leveraging the brand in Concessions both in the UK and internationally; by maximising the opportunities presented by the rapidly growing delivery sector; and by optimising the potential within international markets.”
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