Restaurant chain Nando's pays £30m for Gourmet Burger Kitchen business

17th September 2010, 10:16am

Nando's has said that Clapham House Group, owners of Gourmet Burger Kitchen and The Real Greek, could benefit from its “significant investment and time” after buying the business for a reported £30.4 million.

Earlier this month, Clapham House Group said its weekly performance continued to be "volatile". In a joint statement, the restaurant firms said competition within the sector is becoming "increasingly fierce".

Nando's said it was this financial statement, which prompted it to make, what's being considered, a low-offer. Capricorn Ventures, which owns Nando's, previously had a 27% share in Clapham House Group.

Each remaining share will now cost Nando's 74p and despite this being 31% higher than when talks began, analysts are suggesting that this will be disappointing to shareholders.

KBC Peel Hunt analyst Nick Batram told The Guardian it was a "great deal ... for Nando's", which is paying less than £700,000 a restaurant.

But he added: "The business has lost its way and Capricorn's 27% stake was always going to be a depressing factor in terms of price, but nonetheless we consider 74p to be a disappointing outcome for shareholders."

Gourmet Burger Kitchen has 53 UK restaurants with 14 abroad and has seen a number of imitators join the marketplace. The Real Greek has six sites.

Related Articles:

• 13 Oct 2010 - High street restaurant Nando's launches Christmas gifts range
• 06 Sep 2010 - Gourmet Burger Kitchen owner says “performance remains volatile”
• 30 Jul 2010 - Gourmet Burger Kitchen could be taken over by Nando's, say analysts
• 28 Jul 2010 - Nando's reports inflation-driven sales loss of £23 million
• 19 Jul 2010 - Profits rise at Clapham House Group
• 26 Mar 2010 - The Clapham House Group delivers 'robust performance'

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