Tragus Group, one of the UK’s largest casual dining operators, has confirmed the completion of the sale of Strada Trading Limited to SCP Sugar Limited, an entity controlled by Sun Capital Partners. This will allow Tragus to focus on the development of its core brands, Bella Italia and Café Rouge.
Key highlights
- Agreed sale of 43 Strada sites for a total consideration of £37 million, securing a sustainable future for the business
- Sale terms agreed with independent operators for a further 5 Strada sites
- The sale forms part of the wider Tragus restructuring plan, with the aim of reducing Group indebtedness and focusing operations on the core Bella Italia and Café Rouge brands
Trading in the core Café Rouge and Bella Italia estate has remained solid since the launch of the CVA process in June 2014. Plans for the signing of 12 Bella Italia sites in the next 12 months remain on track, subject to the completion of the restructuring process.
Funding for growth to 500 restaurants
Tragus Group CEO, Steve Richards, commented: “We are very pleased to have agreed the sale of Strada, following an extremely competitive sale process. Sun Capital has significant experience in the consumer sector, which will allow them to continue growing the business. Strada remains an extremely popular brand with customers, at the heart of the fast growing UK casual dining market and we wish the team every success for the future.
“The sale of Strada marks a successful end to the Tragus Group restructuring process which created a more focused business, with 200 high quality Café Rouge and Bella Italia sites across the UK. Next week Tragus will refinance with its financial sponsors and put in place the funding to enable it to grow to 500 restaurants over the medium term. The growth phase has already begun and we will open 12 new sites in the current year and have secured a further 18 in next 12 months.”
