My Kinda Town wooed
Acquisitive restaurant company Groupe Chez Gérard is not the only suitor for My Kinda Town (MKT) it was revealed earlier this week, as news of takeover discussions became public.
Hugh Osmond, a non-executive director at My Kinda Town, told Caterer the bid attempt by Chez Gérard was "opportunistic" and it was certainly not the only approach that had been made to the company. He refused to disclose the other parties.
"We have been in discussions with Chez Gérard but there is no offer on the table. We're not hostile to an offer, it depends on the price," Mr Osmond said.
Chez Gérard issued a statement confirming that preliminary talks were under way but that they were exploratory and an offer might not result.
Mr Osmond said any offer should value MKT at more than £40m before it would be entertained. "Our share price does not reflect our true worth. Investors have overlooked our profits growth overseas, which is going like a train," he added.
MKT was expected by the City to report pre-tax profits for the year to the end of June of £3.1m, of which about 70% are generated outside the UK. By June 1996 profits were predicted to grow to £3.9m.
If Chez Gérard succeeds in acquiring MKT it would transform the upmarket London-based restaurant group, valued at £27m, into an international player of considerable scale.
Since floating on the Stock Exchange in early 1994, Chez Gérard has made no secret of its expansion plans.
But one industry commentator contacted by Caterer doubted whether it had the management experience to handle the franchise and international dimension of MKT's business.
He suggested other possible partners for MKT might be City Centre Restaurants, the rapidly expanding Pelican Group and BrightReasons.
MKT was founded in 1977 by the late Bob Payton, who left the company when it was floated on the Stock Exchange in May 1994. The flotation was assisted by Mr Osmond and Luke Johnson, the pair who brought PizzaExpress to the market.
Brands within MKT include The Chicago Pizza Pie Factory, Tacos and Henry J Bean's. Rapid international expansion, thanks to franchise deals, has left MKT with 43 restaurants in 14 countries.
