French brasserie chain, Côte Restaurants has been acquired by Partners Group, the global private markets investment manager.
The deal is part of a debt-for-equity swap, whereby Partners Group as sole lender to the French-style bistro chain exchanged its debt holdings for ownership in the company from sponsor BC Partners. BC Partners acquired Côte in 2015 for around £240m.
Prior to lockdown the business, which launched in 2007, grew revenue by 7% to £10.2m for the year ended July 28, 2019, while adjusted EBITDA was £18.4m versus £17.9m in 2018.
However, the COVID-19 crisis has had a huge impact on Côte Restaurants, resulting in the firm appointing advisers earlier this year to help create a stronger financial structure.
Partners Group are excited by the potential of Côte and have ambitious plans for the business. To support this development, former Wagamama CEO Jane Holbrook is joining the board as Chair. Holbrook is an industry veteran who most recently led the award-winning team that grew and developed Wagamama to become a leading player in the hospitality sector.
Alex Scrimgeour, CEO of Côte Restaurants, said, “Côte is a well-established business that traded strongly before the crisis and moved quickly to serve loyal customers at home during lockdown.
“New safety protocols enabled Côte to welcome back guests into the restaurants. The entire Côte team is excited to continue its success story with the strong backing of Partners Group.”
Christian Ebert, Managing Director, Partners Group, added, “We see a strong brand with a good following, great quality food and a differentiated operating setup. While the mandatory closure of all Côte’s restaurants due to COVID-19 resulted in a significant loss of revenue and earnings, the brand remains as well-regarded as ever and uniquely positioned in the UK restaurant scene.
“We are excited to onboard the Côte business to the Partners Group platform and welcome more than 3,000 Côte employees. The Partners Group resources and entrepreneurial governance approach will allow Côte to emerge from the pandemic even stronger.”
Holbrook said, “Alex and his team have built a great business and a much loved brand. I’m really delighted to be joining it as we undertake the next phase of development and growth. Exciting times ahead!”