Zeus Capital acts on behalf of M Restaurants on its transformational sale to Gaucho holding company Lomo Bidco
03 Apr 2019
Zeus Capital has acted as the lead advisor to M Restaurants, an award-winning restaurant chain, in connection to its sale to Lomo Bidco, the holding company of Gaucho.
London-based M Restaurants is a multi-faceted brand providing venues for fine dining, wine and cocktail bars, and private members’ lounges. It was founded in 2014 by the entrepreneur Martin Williams, who has been included in this years’ The Sunday Times, Maserati 100 list of the UK’s most innovative entrepreneurs.
The transaction brings together M Restaurants’ three sites and Gaucho’s sixteen restaurants. Lomo Bidco’s offer value, which is undisclosed, will see M Restaurants shareholders achieve a profitable exit from their investment.
Following the transaction, Lomo Bidco, an entity owned by Investec and SC Lowy, will be renamed ‘Rare Restaurants’ and will act as the holding company for the entities operating the group sites. Gaucho and M will maintain independent operational teams, but enjoy one shared head office, where an experienced senior management team will oversee both brands.
Lomo Bidco’s offer for M Restaurants follows its acquisition of Gaucho in October 2018, which enabled Gaucho to successfully exit administration and save 750 jobs. Martin Williams has been at the helm of Gaucho since October 2018 and the restaurant group has achieved consistent double digit like-for-like cover growth over the past four months.
Zeus Capital is is a leading adviser to small and mid-cap private and public companies. Zeus Capital has acted on 116 transactions across public and private markets, which raised a total of £5.3bn.
Martin Williams commented: “I’m excited by the coming together of Gaucho and M Restaurants. Both brands are incredibly close to my heart and I am confident that together with Investec Bank plc and SC Lowy’s backing we have what it takes to build further on the success we’ve achieved to date.”
“When I created M, I hoped that we would eventually find the right new backers to offer our current shareholders a profitable exit, while propelling the company into a new chapter which continues to embrace our entrepreneurial spirit and commitment to an outstanding guest experience. I am delighted that we have found what promises to be a perfect partnership.”
Dane Houlahan, Managing Director of M&A at Zeus Capital commented: “We believe the re-birth of Gaucho and its subsequent strategic combination with M is a much-needed good news story for the UK restaurant sector. It’s been a real pleasure to work with Martin and the wider team and we have no doubt the enlarged group with backing from its new owners will go from strength to strength over the coming years. We wish the team every success for the future.”
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