Frankie & Benny’s owner The Restaurant Group on Tuesday said London can expect to see more Wagamamas opening after it struck a £559 million deal to buy the noodle bar chain.
The Restaurant Group, led by Andy McCue, is buying the Asian-themed business founded by restaurateur Alan Yau in 1992, from private equity firms Duke Street and Hutton Collins.
McCue said: “This is an opportunity for us to expand and make an overseas debut. We get a presence in 24 countries outside the UK.” He added that he was planning to open outlets in Britain’s airports “and to convert some of our existing sites in London into Wagamamas”.
The boss said: “Wagamama is a fantastic brand, with a market leading pan-Asian proposition, which has consistently outperformed the casual dining market in recent years.”
TRG will fund the deal through cash, debt and a rights issue.
Analysts pointed out that Wagamama’s profits were flat in 2018 and the deal will increase the buyer’s debt pile.
Shares in TRG plunged 47.82p, or 16%, to 249.38p.
