Tortilla gobbles rival Fresh Burritos for €3.95m
The brand is planning an expansion in France.
Tortilla Mexican Grill plc has acquired rival Fresh Burritos, one of the biggest fast-casual restaurant groups in France, for a total consideration of €3.95m
The acquisition includes 13 company-owned leasehold restaurants in Paris and other major French cities and the rights to the Fresh Burritos brand and network of 19 franchised locations.
Tortilla sees the acquisition as a way to provide a springboard for franchise growth across Europe. The acquisition will introduce a French Central Production Kitchen, as well as wider buying power, and operational and marketing efficiencies.
Tortilla is also creating a new Tortilla European sub-Board committee created, chaired by Group Non-Executive Director and former YUM! European Franchise Division CFO, Francesca Tiritiello. She will be joined by the newly appointed Non-Executive Director of the sub-Board committee, Gilles Boehringer, former VP of Development & Franchise for KFC France. An experienced European hospitality Managing Director has been appointed and will join in September.
“Tortilla's international ambitions are no secret, and acquiring Fresh Burritos is our gateway to mainland Europe. With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad. We're set to leverage this acquisition, just in time for the Paris Olympics,” Andy Naylor, Chief Executive of Tortilla said.
Tortilla has acquired Fresh Burritos from FBH through a combination of cash payment and bank debt rollover. The deal is funded from the Group’s existing debt facilities and expected to contribute £2.5m of additional annual adjusted EBITDA (pre-IFRS 16) at 24 months maturation.
