North East Restauranteur Acquires Famous London Brand in £10m Deal
Date: 17-08-2007
North East restaurant business Shire Group has bought London restaurant chain Smollensky’s in a deal that more than doubles Shire’s size.
The acquisition involves a £10m funding package and will more than treble the turnover of Corbridge-based Shire Group, which already operates the Pastiche and Le Frog restaurant chains, to £14m. The deal will see the outright acquisition of the £9m turnover Smollensky’s.
Paul Lilley, managing director of The Shire Group, said: “The acquisition of the Smollensky’s group of restaurants is an important milestone in our buy and build strategy. The deal gives us more southern outlets with nine London restaurants, to add to those we have in the Midlands and North West, and adds a very respected brand to our portfolio. It is great news for our North East base of operations.
“The brand is associated with a high quality bar and grill experience. Strong management and the excellent service and discipline we have brought to our other restaurant businesses will make the established name thrive in a new era of ever increasing competition.”
Commercial law firm Muckle LLP advised on the deal with McInnes Corporate Finance and Richardson Hall Kennedy , which was backed by Octopus Private Equity and Alliance & Leicester Commercial Bank’s North East Business Centre.
“The deal offers a new direction for a business established more than 20 years ago and has a great reputation and heritage in the capital. For The Shire Group to be taking the reins is a fantastic coup for the group and we were delighted to be able to provide commercial and property support to Paul”, said Matt Collen of Muckle LLP.
Shawn Bone of McInnes Corporate Finance added: “The Smollensky’s’ acquisition represents great opportunity for The Shire Group to expand into the London market and develop its footprint nationally. The group’s management team has a real passion that for the business and I am sure that they will bring that enthusiasm to Smollensky’s.
“This acquisition gives The Shire Group real critical mass through a tripling of turnover and I anticipate is the start of a wider expansion of a North East success story and that is good for the region.”
Neil Williams, Head of Alliance & Leicester Commercial Bank’s North East Business Centre said: “Speed and flexibility were essential to secure this deal. Paul was looking for a bank that could not only provide a bespoke, competitive full banking package, but also take a positive approach to his strong track record in this sector. The team at the North East Business Centre worked closely with Paul and our solicitors, Dickinson Dees to ensure the process ran smoothly and worked through the night to ensure that the deadline was met. In addition, Alliance & Leicester Commercial Bank’s expertise in handling cash and merchant services will enable Paul to continue to save the business money going forward.”
David Hall, Richardson Hall Kennedy ’s Managing Partner oversaw the accounting and financial advice to the management team said: “This is the fifth major deal that Paul has completed in two years and each one has been bigger than the last. We are delighted to have been involved in these transactions and wish Paul continued success and working with him in the future.”
RHK are registered by the Institute of Chartered Accountants in England and Wales to carry out company audit work. RHK Corporate Finance LLP is registered in England and Wales as a Limited Liaibility Partnership (Registered No. OC308294)
