Wagamama snapped up by group in £559m deal

RESTAURANT chain Wagamama — which has two venues in Northern Ireland — has been snapped up by the owner of Frankie & Benny’s in a deal worth £559m.

The Restaurant Group — which also owns Garfunkel’s, Joe’s Kitchen and Chiquito — will fund the deal through a combination of cash, debt and a rights issue.

Wagamama, which boasts 133 UK outlets, is being sold by private equity firms Duke Street and Hutton Collins.

There are Wagamama restaurants in Belfast’s Victoria Square and at Eastpoint Entertainment Village in Dundonald.

The Restaurant Group operates Frankie & Benny’s in Belfast, at Boucher Road and Victoria Square, and Sprucefield outside Lisburn. Two years ago, it closed down five venues here.

Restaurant Group chief executive Andy McCue said: “This transaction is an exciting and transformative opportunity to create a business which can pursue a truly multi-pronged growth strategy and create substantial value for our shareholders.

“Wagamama is a fantastic brand, with a market-leading pan-Asian proposition, which has consistently outperformed the casual dining market in recent years. Central to this success has been a cohesive culture and clear brand values, which are focused on making the right choices for customers.”

The Restaurant Group will embark on a rights issue to raise £315m and draw on a £220m revolving credit facility to bankroll the deal.