Fund manager and private equity investor Octopus Private Equity has announced it has backed the acquisition of London restaurant group Smollensky’s.
Fund manager and private equity investor Octopus Private Equity has announced it has backed the acquisition of London restaurant group Smollensky’s. Octopus has committed GBP6m alongside senior debt from Alliance & Leicester to support the purchase.
Octopus is backing seasoned restaurateur Paul Lilley, whose past successes include the successful turnaround of the Aberdeen Angus Steakhouse chain, to run the group, which comprises Smollensky’s along with Lilley’s existing UK Midlands restaurant business, Le Frog Bistros.
Bill Shannon, who as chairman recently headed the successful reinvigoration of Gaucho Grill, joins the team as chairman, having previously been managing director of several businesses within the Whitbread group.
With nine sites in central London, Smollensky’s operates under the Smollensky’s Bar & Grill, Burgershack by Smollensky’s and Smollensky’s Metro brands. Le Frog Bistros, which also includes the Pastiche Bistro brand, has eight sites in the UK’s north-west and Midlands.
‘We are delighted to have secured Smollensky’s, with Octopus as our new investment partner,’ says Lilley, who becomes chief executive of the combined group. ‘We now have a group of fantastic London sites and big plans for improvements at Smollensky’s. In time we will grow the business organically and by acquisition. Le Frog in the north continues to grow and we expect to expand the group rapidly.’
Adds Shannon: ‘Having been part of the team that built brand value within the Gaucho Grill business, I can see similar opportunities for Smollensky’s. We strongly believe we can add value for both customers and shareholders.’
The deal was led for Octopus by Alistair Brew and Matt Penneycard. Brew, who joins the Smollensky’s board, says: ‘This was a complex transaction and one that was completed within a short timetable, but we are delighted to be backing such strong management.’
Octopus was introduced to the transaction by Mark Stevens at Christie Corporate Finance. Other advisers to Octopus included Wragge & Co (legal), Baker Tilly (financial due diligence), Pragma (commercial due diligence), and Cardinal (management due diligence).