Electra Partners has agreed the acquisition of the UK franchise of TGI Fridays, the American-styled restaurant chain from TGI Fridays Restaurants, a Company owned by Sentinel Capital Partners and TriArtisan Capital Partners.
Electra Private Equity PLC has invested £100 million of equity in the deal alongside TGI Fridays management team, led by Karen Forrester. Debt facilities for the transaction have been provided by ICG and Barclays.
TGI Fridays is an authentic American casual restaurant chain offering a fun and lively dining experience for both young adults and families alike. The group has 66 UK restaurants, operating from a range of locations, including city centres, shopping centres and leisure parks. TGI Fridays restaurants focus on engagement with guests and the business prides itself on creating a memorable experience thanks to its energetic and enthusiastic team and lively atmosphere.
Alex Fortescue, Chief Investment Partner of Electra Partners, said:
“This is the first new investment we have made since announcing a record level of investment for the year to 30 September 2014 and we are delighted to have been able to put more of Electra Private Equity’s cash to work in such a promising opportunity. Our deal flow remains strong and we are confident that 2015 will yield more exciting opportunities.”
Bill Priestley, Partner at Electra Partners, said:
“TGI Fridays is exactly what we look for in an investment – an attractive, differentiated business with an impressive financial track record and an excellent management team. We look forward to working with Karen Forrester and her team to develop the business further through a mixture of organic growth and new restaurant openings, while at the same time continuing to improve the existing sites.”
Karen Forrester, CEO of TGI Fridays UK, said:
“In Electra Partners we are delighted to have found a long-term partner capable of supporting our growth ambitions, as we look to further expand TGI Fridays share of the UK market.
“TGI Fridays best-in-class service, unique bars and exciting dining environments create a unique guest experience with a wide demographic appeal. The enthusiasm of our team members is the key to this and they will remain at the centre of our offering.”