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By Pádraig Hoare
A € 400m purchase of the Wagamama chain by British firm Restaurant Group will have no impact on the Irish franchise owned by Paddy McKillen Jr. Press Up Entertainment Group.
Press Up operates three Wagamama restaurants in Dublin and will continue to do so, despite Group Restaurant buying the noodle chain for £ 357m (€ 400m).
Shares in Restaurant Group plunged more than 18% on the acquisition.
Analysts suggest the price is high on the high side of the list and it's the most important place in the UK's high street, which has been hit by the turndown in consumer spending.
Restaurant Group operates more than 500 restaurants including Frankie and Benny's, Chiquito, Coast to Coast, Garfunkel's, Firejacks, Brunning & Price and Joe's Kitchen.
It also operates on a concession business which trades over 60 outlets in more than 30 brands, mainly in UK airports. Press Up Entertainment Group operates three Wagamama franchises at South King St, Dundrum Town Center, and Blanchardstown Center.
"The sale of Wagamama global to Britain's Restaurant Group will have implications for Irish outlets of Wagamama," said spokeswoman for Press Up said.
A spokesman for the Restaurant Group would be happy to accept the Irish franchise agreement.
The deal marks a shift for Restaurant Group, most of its restaurants and gastropubs focus on American, Tex-Mex and traditional British cuisine and is expected to generate savings of 22m.
Restaurant Group will launch a £ 315m issue to the deal, which it expects to be earnings enhancing.
The company said the deal had an enterprise value of £ 559m, and included 138 directly-operated restaurants in the UK and the US and 58 franchised restaurants in Europe, the Middle East, and New Zealand.
Wagamama began in 1992 in Bloomsbury and has expanded steadily.
Additional reporting Bloomberg and Reuters
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