Patisserie Valerie saved by Irish private equity firm
TROUBLED UK cafe operator Patisserie Holdings sold its two main businesses for a combined consideration of £13m (€14.8m) yesterday, administrators said.
In a statement Patisserie said its Patisserie Valerie business has been bought by Causeway Capital Partners, an Irish private equity firm.
Meanwhile, its sandwich chain Philpotts was sold to wholesale and distribution group A.F. Blackmore.
The two were sold for £10m in cash, and a further £3m in future payments.
The total price given for Philpotts and Patisserie Valerie was £2m less than an offer that was withdrawn by Mike Ashley’s Sports Direct earlier this week.
The acquisition of the Patisserie Valerie business has been funded with investment from Causeway Capital and by the new management of the business, led by Steve Francis as chief executive.
Patisserie Valerie will maintain 96 of its branches – preserving up to 2,000 jobs.
In Ireland, Patisserie Valerie has two outlets – on Dublin’s Henry Street and in Blanchardstown, Co Dublin.
The new owners declined to comment on whether the Irish stores will be saved.
Steve Francis, CEO of Patisserie Valerie, said: “We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business.” He added: “The affection and loyalty for the brand among our customers and employees, and Causeway Capital’s enthusiasm and support for the business, creates for us the foundations for an exciting future for the business.”
Patisserie was plunged into crisis in October when it announced that accounting irregularities had been uncovered.
It hired KPMG as administrators in an attempt to save the company, which traces its roots back to a shop founded 93 years ago.
It is understood the group’s former chairman, Luke Johnson, will not be part of the new management team of Patisserie Valerie.
Dublin-headquartered Causeway Capital was launched in 2015 to invest in growing small and medium companies in Ireland and the UK. It manages funds on behalf of European pension funds, investment funds and financial institutions.
The group’s investment in Patisserie Valerie will be the sixth completed investment from its maiden fund.
Causeway Capital’s Matt Scaife said: “This investment should mark the end of a turbulent period for customers and suppliers alike.
“We are delighted to partner with the team and look forward to helping the business return to growth.”