Hutton Collins has invested £82 million of mezzanine and equity financing to support Duke Street's acquisition of wagamama from Lion Capital. Hutton Collins has taken a minority equity stake, while the rest of the business will be held by Duke Street and management. Funds managed by Hutton Collins Partners have invested in wagamama on two previous occasions, initially supporting Graphite Capital in its 2004 recapitalisation of the business, and subsequently backing Lion Capital's acquisition in 2005.
wagamama is the leading chain of Japanese-style noodle bars in the UK, with 70 restaurants, in addition to three outlets in the US and a franchise operation comprising 36 restaurants in 16 countries across Europe, the Middle East and Australasia. The business has expanded significantly over recent years and expects to continue this growth, both in the UK and internationally.
This is Hutton Collins's fourth investment in the past 12 months, following investments in IT services company 2e2, also backed by Duke Street, satellite communication services provider Vizada, and Caffè Nero. Since its inception in 2002, Hutton Collins has invested in the leisure sector nine times, with companies such as Caffè Nero, Pizza Express, Coral Eurobet, Ster Century and Loch Fyne Restaurants.
Steve Hill, Chief Executive of wagamama, commented:
"It's great to have Hutton Collins back on board as an investor. It's not often that you maintain such close contact, and have such a positive working relationship with an investor over a seven-year timeframe spanning three separate investments. They've seen the business through a period of significant expansion, and together with Duke Street, I look forward to another fruitful collaboration."
Matthew Collins, Founding Partner of Hutton Collins, commented:
"wagamama is an excellent business that has gone from strength to strength since we first invested in 2004. The fact that this is Hutton Collins's first hat-trick investment demonstrates our confidence in the potential of this business, and we are delighted to be working with Steve and his team again. The company has ambitious expansion plans, and with Duke Street's backing we look forward to helping it realise them."