Apollo’s $650mn All-Cash Offer to The Restaurant Group

RBC Capital Markets acted as sole financial advisor and left lead underwriter to Apollo private equity funds, securing an award-winning all-cash deal to fuel the growth and expansion of a leading casual dining brand.

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Transaction highlights

Unboxing the deal

a burrito Apollo brings strategic vision to the table
Supporting a return to pre-Covid EV/EBITDA multiples and facilitating a more stable growth strategy.

Serving up
the deal

RBC Capital Markets acted as sole financial advisor and lead underwriter to funds managed by Apollo Global Management in a deal worth £700 million in enterprise value. Apollo is a leading alternative asset manager with extensive global experience in the consumer, retail, and hospitality sectors and is well-positioned to support the long-term strategic growth of TRG.

The Restaurant Group (TRG) is a leading casual dining brand with an attractive portfolio of approximately 380 restaurants and pubs in the UK, including the iconic Wagamama restaurant chain and leading pub and restaurant group, Brunning and Price, and a portfolio of UK airport concessions.


Facilitating strategic
growth and expansion

RBC and Apollo have a strong relationship in the Leisure and Dining sector, building on RBC’s extensive industry expertise across Europe to assess deal opportunities.

Like all pub and restaurant brands, TRG’s portfolio faced challenging headwinds during the Covid-19 pandemic and afterwards, as subsequent high interest rates and inflation impacted the sector’s recovery, putting pressure on margins and profitability3.

Apollo Private Equity saw an opportunity for TRG to be brought into private ownership and benefit from access to capital and a long-term investment approach.

This created an opportunity for constructing an optimised offer for Apollo stakeholders, offering TRG shareholders 65 pence per share, an attractive premium for shareholders.

“TRG’s business has proven resilient through macroeconomic cycles but the outlook is still one of high interest rates and inflationary pressures and the company now needs the support of patient private capital to achieve its ambitions.” 

Alex van Hoek,
Partner
Apollo
November, 2023

Fresh strategy to fuel growth
Apollo to support TRG’s growth and expansion strategy with access to long-term capital, supported by RBC financing and revolving door credit.


A plate of meat and fettucini Award-winning deal supports expansion of TRG’s attractive portfolio of well-known brands
Acquisition adds high-value dining brand to Apollo’s portfolio while supporting TRG’s long-term growth potential.

Expertise and Flexible
Financing Solutions

RBC Capital Markets worked with Apollo to deliver the best outcomes for stakeholders, combining strategic expertise with flexible credit and financing solutions to add a leading brand with significant growth potential to Apollo’s diverse portfolio.

In 2018, RBC Capital Markets also acted as lead financial advisor to TRG for its acquisition of Wagamama, and also acted as sole underwriter on a £220 million revolving credit facility. This provided valuable context to support Apollo’s acquisition, which garnered a Global Capital Award for EMEA Financial Sponsor M&A deal of the year.


Facilitating strategic
growth plans

This transaction was selected as the EMEA Financial Sponsor M&A Deal of the Year award at the inaugural Global Capital Equity and M&A Awards. The award recognizes RBC Capital Markets role as sole financial advisor to the Apollo funds on its acquisition of The Restaurant Group, reflecting our expertise in the consumer, retail & leisure sector and UK M&A, further cementing our position as a trusted advisor to our clients.

GlobalCapital Equity and M&A Awards 2023. EMEA Financial Sponsor M&A Deal of the Year. Apollo aquisition of TRG. Royal Bank of Canada image with a gold star with an award in it and royal blue background.


Sources
1 https://trggroupltd.com/wp-content/uploads/2023/10/Rule-2.7-Announcement.pdf
2 https://trggroupltd.com/wp-content/uploads/2023/10/Rule-2.7-Announcement.pdf
3 https://www.reuters.com/markets/deals/apollo-owned-vehicle-buy-wagamama-owner-restaurant-group-6234-mln-2023-10-12/


Leisure and Dining M&A: Our expertise

RBC Capital Markets is a leading M&A advisor in the leisure space, executing several deals in the last six years. Click here to read more about our global M&A expertise.