RTN.L Regulatory News (RTN)

22 Jun 2005 07:00

Restaurant Group PLC22 June 2005 The Restaurant Group plc Acquisition of Blubeckers Ltd The Board of The Restaurant Group plc ("TRG") announces that it has acquired theentire issued share capital of Blubeckers Ltd (the "Acquisition"), a UK operatorof destination restaurants, from CI Traders Ltd ("CIT") for a total cashconsideration of £27.05m (comprising £22.75 million for the share capital and£4.3 million repayment of inter-company debt). Blubeckers Ltd operates 17 restaurants in the Home Counties under two brands,Blubeckers (12) and Edwinns (5). The restaurants are predominantly characterproperties located in neighbourhood, rural and semi-rural locations. Bothconcepts, Blubeckers and Edwinns, are focused on a broad range of consumersincluding adults, families and mature consumers. The restaurant formats arebased on a brasserie style restaurant and accompanying pre-eating bar area, withseveral of the restaurants benefiting from exterior eating areas. The majorityof sites have dedicated parking areas and several of the restaurants are set inattractive grounds. The acquisition of Blubeckers Ltd provides The Restaurant Group with additionalscope to further develop its business in a segment of the eating out marketwhich possesses good prospects for growth, distinct barriers to entry and iscapable of delivering good levels of return. Both the Blubeckers and Edwinns brands enjoy good levels of customer recognitionand loyalty in their local markets and it is The Restaurant Group's intention tofurther roll out both brands in rural, semi-rural and neighbourhood locations. The total consideration for the acquisition is £27.05m on a debt free basis andis subject to adjustment following the finalisation of completion accounts. Theconsideration has been satisfied from the existing banking facilities availableto TRG. In the year ended 30 January 2005 the acquired business had turnover of £15.6m,profit before interest and tax of £1.7m, profit before tax of £1.4m and netassets of £14.5m. Before central overheads of £1.4m, the EBITDA of the businessacquired was £3.7m (note 2). The Directors of TRG expect the Acquisition of Blubeckers Ltd to be earningsenhancing1 in the current financial year. Alan Jackson, Executive Chairman of The Restaurant Group, said: "The acquisition of Blubeckers represents an exciting opportunity for furthergrowth. It operates in a market with excellent potential and one that meetseach of our three key strategic criteria. We have acquired a business with two well respected and established brands, agood portfolio of sites and an experienced management team. We intend to further develop the potential of the existing units and to add newones." THERE WILL BE AN ANALYST CONFERENCE CALL AT 9.00 AM TODAY. THE DIAL IN DETAILSARE: 020 8515 2309 22 June 2005 1. This statement should not be taken to mean that future earnings pershare of The Restaurant Group plc following the Acquisition will necessarilymatch or exceed historic earnings per share and no forecast is intended orimplied. 2. In the year ended 30 January 2005, the statutory accounts of BlubeckersLtd show turnover of £15.9m, profit before tax of £1.3m and net assets of£14.5m. Shortly before completion of the acquisition, six pub sites which werenot part of the acquired business were transferred from Blubeckers Ltd toanother subsidiary of CIT. These sites account for the difference between thestatutory accounts and the numbers referred to above. ENQUIRIES: The Restaurant Group plc Tel: 020 7747 7750Alan Jackson, Executive ChairmanAndrew Page, Group Managing DirectorStephen Critoph, Finance Director College Hill Tel: 020 7457 2020Matthew Smallwood PricewaterhouseCoopers Corporate Finance Tel: 020 7583 5000Sean Williams, Partner This information is provided by RNS The company news service from the London Stock Exchange