Gourmet Burger Kitchen could be taken over by Nando's, say analysts

30th July 2010, 8:15am

Rumours are rife that Clapham House Group, owner of Gourmet Burger Kitchen and The Real Greek, is set to be taken over by Nando's parent company Capricorn Ventures.

An article in The Guardian said analysts believe Capricorn Ventures has made the bid but Clapham House Group moved quickly to calm speculation.

The business has only confirmed that it has "…received an approach which may or may not lead to an offer being made for the Company".

Adding: "There can be no certainty that an offer will be made for the Company or the terms on which such an offer may be made. A further announcement will be made in due course, as appropriate."

This didn't seem quash rumours and shares in Clapham House Group jumped 11.5p to 73.5p.

Analysts suggest that an offer of anything between 80p to 100p may be enough to seal the deal.

Peter Backman of foodservice consultancy Horizons isn't surprised by the rumours and believes the restaurant sector will see more of this type of consolidation as the year goes on.

Backman said: "The fact that Nando's owner Capricorn Ventures International has made a bid approach for Clapham House, owners of the Gourmet Burger Kitchen and the Real Greek brands, is further evidence of the consolidation we are likely to continue seeing in the eating out sector as we move slowly out of the recession.

"This week Carlson, the US hospitality group, has bought out its private equity partner in TGI Friday's UK and we have already seen Tragus expressing interest in Chez Gerard operator Paramount, the owners of La Tasca launching a formal auction process for the Spanish tapas chain and Ego, the northwest chain of Mediterranean restaurants, looking for a purchaser.

"These takeover attempts focusing on strong brands, yet brands that are not yet mature in terms of geographic saturation, become more likely as the eating out market begins to improve. Bidders are keen to strike before prices recover fully while banks are beginning to finance the right deals again."

Related Articles:

• 13 Oct 2010 - High street restaurant Nando's launches Christmas gifts range
• 17 Sep 2010 - Restaurant chain Nando's pays £30m for Gourmet Burger Kitchen business
• 01 Sep 2010 - Nando's “indecent” internet ad complaints not upheld
• 12 Aug 2010 - Big Brother housemates take over Nando's for a night and raise cash for Barnardo's
• 28 Jul 2010 - Nando's reports inflation-driven sales loss of £23 million
• 19 Jul 2010 - Profits rise at Clapham House Group

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