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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