Apollo Global Management, a private equity firm based in the United States, has made a deal to acquire The Restaurant Group (TRG), the parent company of Wagamama, for a total of £506 million ($620 million).
As a result of this deal, TRG will undergo a privatization process.
As reported by Reuters, this agreement has been reached after a prolonged effort by activist investors to bring about significant changes within the dining operator.
Apollo has been eyeing the acquisition of TRG for an extended period, driven by the private equity firm’s belief that TRG has solidified its presence in the casual dining sector through its diverse range of concepts and brands.
As part of this acquisition, Apollo has consented to remunerate TRG stakeholders with 65 pence per share in cash.
Going forward, Apollo has agreed to support TRG in further developing its business by investing in the customer offering and future growth of its footprint.
Leveraging its industry expertise, Apollo also plans to support TRG and its management team throughout the upcoming phase of growth for Wagamama, Pubs, and Concessions.
TRG chairman Ken Hanna said, “TRG operates a diverse portfolio of some of the UK’s leading hospitality brands.
“As a result of ongoing positive management actions and the margin accretion plan we announced in March this year, the group has recovered well from the challenges of the pandemic and the cost of living crisis.
“The TRG Board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment.”
Last month, TRG reached an agreement with Big Table Group to sell its loss-making leisure arm, which includes restaurant brands such as Frankie & Benny’s and Chiquito.
