Whitbread has agreed to sell its German restaurant business, Maredo, to German Equity Partners II LP (a fund advised by ECM Equity Capital Management GmbH) and Co-Investors Parcom Ventures and Fortis Private Equity for total proceeds of €35.6m (US$46.2m).
The sale figure includes a repatriation of capital prior to the sale. The net asset value is €29m.
Maredo is the leading German steakhouse brand, consisting of 58 restaurants (54 in Germany and 4 in Austria) with 1880 employees, Whitbread said. The current management of the business will remain with the business post sale.
Maredo was founded 30 years ago and was purchased by Whitbread in 1994.
“I announced at the Business Review in October 2004 our strategy to exit from non-core parts of our business and made clear our plans to dispose of Maredo. I am delighted we have been able to achieve this within a short timeframe,” said Whitbread chief executive Alan Parker.
“Whitbread has significantly reshaped itself over the past year and we have a strong platform to build on in the three sectors of the leisure market where we have leading positions: budget hotels, restaurants, and health and fitness clubs,” he said.
The transaction is subject to regulatory clearance in Germany and Austria and is anticipated to be completed in May. The effect of the transaction on Whitbread profits is not believed to be material.