Wimpy-owner Famous Brands has signed an agreement to acquire the entire share capital of restaurant-chain Gourmet Burger Kitchen (GBK).
Regarded widely as a high-end UK burger chain, GBK will change hands in a £120m deal.
Launched in 2001 in Battersea, south London, GBK was founded by three New Zealanders, together with the creative culinary support of New Zealand chef, Peter Gordon.
The chain was bought later from its founders in 2010 by South African private equity vehicle Yellowwoods.
The Yellowwoods’ acquisition marked a turning point in the company’s history, setting the brand on its current growth trajectory.
Kevin Hedderwick, Famous Brands’ Group strategic advisor, said: “Enhancing the compelling rationale for this acquisition is the benefit we have derived from the substantial devaluation of the brand since we commenced negotiations with GBK earlier this year.”
“In terms of scale and scope, this is the biggest deal the Group has ever concluded, and one which will transform the future of the business. It will be as much of a game-changer for the Group as our acquisition of Wimpy SA was in 2003.
He continued: “Quite simply, GBK is a best in class business and brand, with growing consumer equity, supported by a phenomenal leadership team.”
GBK comprises 75 company-owned restaurants across the UK, and it’s been confirmed that the chain's current management team and staff will remain in place.
Hedderwick said: “We are delighted to inherit an exceptional, highly experienced senior management, supported by an energetic, engaged team.”
GBK also recently secured an agreement to buy back five franchises in Ireland, and Famous Brands has said it’s considering opening up in South Africa.
“We are confident that the existing business model has the potential to double GBK’s restaurant footprint within the next five years,” said Hedderwick.
The news follows the release of recent research from Mintel which reveals the UK burger bar market is estimated to be worth £3,286 million in 2016, up 22% from £2,701 million in 2011, and 60% of Brits had visited a burger outlet in the three months leading up to July.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
