Acquisition

Restaurant Group PLC 22 June 2005 The Restaurant Group plc Acquisition of Blubeckers Ltd The Board of The Restaurant Group plc ('TRG') announces that it has acquired the entire issued share capital of Blubeckers Ltd (the 'Acquisition'), a UK operator of destination restaurants, from CI Traders Ltd ('CIT') for a total cash consideration of £27.05m (comprising £22.75 million for the share capital and £4.3 million repayment of inter-company debt). Blubeckers Ltd operates 17 restaurants in the Home Counties under two brands, Blubeckers (12) and Edwinns (5). The restaurants are predominantly character properties located in neighbourhood, rural and semi-rural locations. Both concepts, Blubeckers and Edwinns, are focused on a broad range of consumers including adults, families and mature consumers. The restaurant formats are based on a brasserie style restaurant and accompanying pre-eating bar area, with several of the restaurants benefiting from exterior eating areas. The majority of sites have dedicated parking areas and several of the restaurants are set in attractive grounds. The acquisition of Blubeckers Ltd provides The Restaurant Group with additional scope to further develop its business in a segment of the eating out market which possesses good prospects for growth, distinct barriers to entry and is capable of delivering good levels of return. Both the Blubeckers and Edwinns brands enjoy good levels of customer recognition and loyalty in their local markets and it is The Restaurant Group's intention to further roll out both brands in rural, semi-rural and neighbourhood locations. The total consideration for the acquisition is £27.05m on a debt free basis and is subject to adjustment following the finalisation of completion accounts. The consideration has been satisfied from the existing banking facilities available to TRG. In the year ended 30 January 2005 the acquired business had turnover of £15.6m, profit before interest and tax of £1.7m, profit before tax of £1.4m and net assets of £14.5m. Before central overheads of £1.4m, the EBITDA of the business acquired was £3.7m (note 2). The Directors of TRG expect the Acquisition of Blubeckers Ltd to be earnings enhancing1 in the current financial year. Alan Jackson, Executive Chairman of The Restaurant Group, said: 'The acquisition of Blubeckers represents an exciting opportunity for further growth. It operates in a market with excellent potential and one that meets each of our three key strategic criteria. We have acquired a business with two well respected and established brands, a good portfolio of sites and an experienced management team. We intend to further develop the potential of the existing units and to add new ones.' THERE WILL BE AN ANALYST CONFERENCE CALL AT 9.00 AM TODAY. THE DIAL IN DETAILS ARE: 020 8515 2309 22 June 2005 1. This statement should not be taken to mean that future earnings per share of The Restaurant Group plc following the Acquisition will necessarily match or exceed historic earnings per share and no forecast is intended or implied. 2. In the year ended 30 January 2005, the statutory accounts of Blubeckers Ltd show turnover of £15.9m, profit before tax of £1.3m and net assets of £14.5m. Shortly before completion of the acquisition, six pub sites which were not part of the acquired business were transferred from Blubeckers Ltd to another subsidiary of CIT. These sites account for the difference between the statutory accounts and the numbers referred to above. ENQUIRIES: The Restaurant Group plc Tel: 020 7747 7750 Alan Jackson, Executive Chairman Andrew Page, Group Managing Director Stephen Critoph, Finance Director College Hill Tel: 020 7457 2020 Matthew Smallwood PricewaterhouseCoopers Corporate Finance Tel: 020 7583 5000 Sean Williams, Partner This information is provided by RNS The company news service from the London Stock Exchange
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