The Restaurant Group (TRG) has agreed to purchase the entire issued share capital of Mabel Topco Limited, the holding company of a group that owns and operates the Wagamama restaurant business for a cash payment of €401.7m (£357m), representing an enterprise value of €629m (£559m). The deal is expected to result in estimated cost synergies and site conversions synergies of approximately €24.7m (£22m).
Wagamama will be run as an autonomous division of the Enlarged Group. Emma Woods, currently Wagamama Chief Growth Officer, will become the Wagamama CEO, leading an experienced operational team. Allan Leighton, the current Chairman of Wagamama, will join the TRG board as a Non-Executive Director.
Commenting on the transaction, Andy McCue, TRG CEO 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."
