LDC BACKS LA TASCA TEAM IN RESTAURANT ROLLOUT
In an institutional buyout, mid-market private equity firm LDC is backing the management team which built the La Tasca chain in their latest business venture - the rollout of Mediterranean-style restaurant group Ego.
Established in 1997, Ego offers an eclectic mix of dishes from all over the Mediterranean, cooked using predominantly fresh and locally sourced produce. It currently operates five restaurants across the North West, with a sixth scheduled to open in the Midlands in late April.
Led by Executive Chairman James Horler, the five-strong management team at Ego has acquired a significant minority stake in the business. The same team has opened approximately 120 restaurants in the UK since 1996, comprising 57 La Tasca units and 63 Frankie & Benny’s units.
In 2001 the team completed the £27million IBO of Spanish-themed chain La Tasca, and increased profits four fold before selling the business in 2007.
LDC, which has taken a majority stake in the business, will invest up to £9.1million to fund the initial acquisition and the rollout of 36 new outlets.
The buyout, which provides a full exit for Ego’s founders Jason Ellison and Jonathan Poole, was led by Craig Armour, Senior Director in LDC’s Edinburgh office. John Barnes and Ian Edward join the business as non-executive directors.
Barnes acquired Harry Ramsdens in 1988, led the IPO in 1989 and completed the £20million sale to Compass in 1999. Edward is a former non executive of Duke Street Capital and recently advised Paramount on the acquisition of Cafe Uno and Loch Fyne on the sale to Greene King Plc.
James Horler, Executive Chairman of Ego, said: “Many suburban areas in the Midlands and North West are under-provided for in terms of quality casual dining and Ego is well placed to make excellent inroads into this area.
“The concept has already proved popular in key locations across the North. We’ve acquired a well-run chain which will act as a solid platform from which to develop the business and execute a successful rollout.
“In LDC we’ve secured the backing of a leading investor which understands our approach and will provide the financial and strategic support required to establish Ego as a successful restaurant brand.”
Craig Armour, Senior Director at LDC, said: “The casual dining sector is set to continue to grow as eating out is such an integral part of people’s lifestyles.
“We’re backing a management team which has worked together since 1995 and which has a track record of using their complementary skills to create significant shareholder value.”
ENDS 28 March 2008
Press Release by http://www.citypress.co.uk/