Holding company that saved Gaucho acquires M Restaurants

M Restaurants 1

Gaucho holding company Lomo Bidco – an entity owned by Investec Bank plc and SC Lowy – revealed yesterday that it has done a deal to acquire M Restaurants.

The transaction brings together M Restaurants’ three venues and Gaucho’s 16 sites.

Following the transaction, Lomo Bidco will be renamed ‘Rare Restaurants’ and will act as the holding company for the group.

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Gaucho and M will continue to operate with independent operational teams, but enjoy one shared head office, where an experienced senior management team will oversee both brands.

The founder of M Restaurants, Martin Williams, will assume the role of CEO of Rare Restaurants and will be joined by a fresh team of leading industry talent including former D&D executive Jim Kottler as CFO.

Lomo Bidco’s acquisition of M follows the transaction to buy Gaucho out of administration last October in a move that later saw Mr Williams installed at the helm. The group has achieved consistent double digit like-for-like cover growth over the past four months.

Rare Restaurants will operate and manage two established UK dining brands, bringing efficiencies across operations, strategy and talent.

Mr Williams said: “I’m excited by the coming together of Gaucho and M Restaurants. Both brands are incredibly close to my heart and I am confident that together with Investec Bank and SC Lowy’s backing we have what it takes to build further on the success we’ve already achieved.

Martin Williams will assume the role of CEO of Rare Restaurants following the takeover of M Restaurants.

“When I created M, I hoped that eventually, we would find the right backers to offer our current shareholders a profitable exit, while propelling the company into a new chapter which would embrace our entrepreneurial spirit and commitment to an outstanding guest experience. I am delighted that we have found what promises to be a perfect partnership.”

Investment bank Zeus Capital advised Management through the transaction process as well as the M shareholders on the sale.

Dane Houlahan, M&A managing director at Zeus, commented: “We believe the new strategy behind Gaucho and its subsequent combination with M is a much needed positive piece of news for the UK restaurant sector.”

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Tags : acquisitionGauchoLomo BidcoM RestaurantsRare Restaurants
Andrew Seymour

The author Andrew Seymour

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