Disposal

Whitbread PLC 31 May 2002 For Immediate release 31 May 2002 ECI backs £25m MBI of Pelican and BrightReasons from Whitbread The Pelican Group Limited and BrightReasons Group Limited have been sold by Whitbread PLC to a management buy-in (MBI) team backed by private equity firm ECI, for a cash consideration of £25 million. Tragus Holdings Limited has purchased the Pelican and BrightReasons groups which comprise 153 restaurants including the Cafe Rouge, Bella Pasta, Mamma Amalfi, Abbaye, Leadenhall Wine Bar and Oriel brands. Whitbread's decision to sell the business followed a review of its restaurant division in October 2001 and is in line with the group's strategy of driving growth from its core restaurant brands (Brewers Fayre, Brewsters, Beefeater, Costa, Pizza Hut and TGI Friday's). Tragus is led by chief executive Finlay Scott, former head of the Aroma cafe chain and of Whitecross Dental Care. The MBI team also includes Gavin Williams, (who was managing director of Bella Pasta between 1997 and 1999 and later of Aroma), who will be chief operating officer, and Harry Morley, former finance director of Whitecross Dental Care, who will be chief financial officer. Gavin Casey, former chief executive of the London Stock Exchange, becomes non-executive chairman. Richard Chapman and Ken Lindsay of ECI have also joined the board as non-executive directors. Tragus plans to invest in and develop Cafe Rouge and Bella Pasta as leading family brands in the burgeoning dining-out and pizza / pasta sectors. Plans include the development of all-day dining menus at Cafe Rouge and broadening the appeal of the Bella Pasta brand. The other restaurants will continue to be operated as niche brands. Finlay Scott, chief executive of Tragus, commented: 'There is a first class team of talented people within the business and the brands have considerable popular appeal. They will prosper with more focused investment and marketing and the greater innovation allowed by an entrepreneurial approach.' Richard Chapman of ECI said: 'We will build on very strong foundations rather than go for wholesale change. This business has a good future and we will invest in these valuable brands.' The £25 million of cash consideration is subject to adjustment for working capital after completion of the deal. Dresdner Kleinwort Wasserstein acted as financial adviser to Whitbread PLC; Altium Capital acted as financial adviser to Tragus Holdings Limited. Enquiries: Whitbread PLC Tragus Holdings Dan Waugh - 020 7806 5442 020 7763 5992 or 07973 159918 Einir Williams or Ray Eglington, Four Communications Dresdner Kleinwort Wasserstein EC1 Ventures Tel: 020 7623 8000 020 7357 6606 or 07778 343252 Nigel Binks Mark Brown, Dialogue Charles Berkely Altium Capital 020 7484 4040 Glen Cooper Rupert Hill Dresdner Kleinwort Wasserstein Limited ('Dresdner Kleinwort Wasserstein'), which is regulated in the United Kingdom by the Financial Services Authority, is acting for Whitbread PLC and for no one else in relation to the matters discussed herein and will not be responsible to anyone other than Whitbread PLC for providing the protections afforded to customers of Dresdner Kleinwort Wasserstein nor for providing advice in relation to the matters discussed herein. Altium Capital Limited ('Altium Capital'), which is regulated in the United Kingdom by the Financial Services Authority, is acting for Tragus Holdings Limited and for no one else in relation to the matters discussed herein and will not be responsible to anyone other than Tragus Holdings Limited for providing the protections afforded to customers of Altium Capital nor for providing advice in relation to the matters discussed herein. Sir John Banham, the Chairman of Whitbread is also Chairman of ECI Group Limited ('ECI Group'). By virtue of his interests in the share capital of ECI Group and certain existing commitments to participate in the funding of investments made by entities associated with ECI Group, Sir John will have a small indirect financial interest in Tragus Holdings Limited. Although Sir John took part in the decision of Whitbread to put the Pelican business up for sale, he took no part in the decisions of Whitbread, ECI Group or entities associated with ECI Group to enter into the transaction referred to in this announcement. END This information is provided by RNS The company news service from the London Stock Exchange

Companies

Whitbread (WTB)
UK 100

Latest directors dealings