Apollo Group acquires wagamama owner for £506m

TRG will now become a private entity.

The Restaurant Group has been acquired by US private equity firm Apollo Group for £506m.

TRG operates 400 restaurants in the UK and owns brands like Frankie & Benny’s and wagamama.

The acquisition is expected to be completed by early 2024 and will need 75% shareholder approval before proceeding. Once completed, TRG’s shares will be taken off the London Stock Exchange and made private.

The board said it planned to unanimously recommend investors accept the offer, which represents a 34% premium on Wednesday’s closing price of 48p.

At least 75% of shareholders will have to back the deal, which could be completed as early as next spring and would see its shares taken off of the London Stock Exchange and into private hands.

According to Ken Hanna, the Chair of TRG, the group has recovered from the challenges of the pandemic and the cost of living crisis.

"This is evidenced by the continued strength of our trading performance versus the broader hospitality sector and the share price increasing 55% this year. In addition, the TRG Board and management of TRG have reviewed in detail the strategic options available to the group, resulting in the announcement of the proposed sale of the Leisure business. The TRG Board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment. As such, the TRG Directors intend to unanimously recommend the offer to TRG Shareholders,” Hanna said.

Hanna previously announced that when 2024 comes, he will not be seeking re-election as the group’s next AGM due to personal reasons.