TRG buys stake in Living Ventures
The Restaurant Group (TRG) has acquired a 40% stake in bar operator Living Ventures for £7.7m.
The deal includes the option to buy the remaining 60% of the company by 2008, including private equity firm Bowmark Capital's 30% holding.
Simultaneously, Living Ventures has bought the struggling Est Est Est restaurant chain from TRG for £16.4m.
The bar operator has borrowed to fund the deal and will pay back £6m in three months time and the balance of £10.4m in three years.
As part of the deal, TRG has the right to buy back Est Est Est from Living Ventures if it decides not to buy the bar business outright in 2008.
Living Ventures co-founder Tim Bacon said: "The addition of Est Est Est is a transformational deal for Living Ventures, providing a great opportunity for the company to expand its product range and become even more food-led."
Four other Living Rooms are due to open this year, including two more outlets in London as well as sites in Oxford and Cambridge, bringing the chain's total to 15.
TRG executive chairman Alan Jackson pockets a bonus of £222,000 from Bowmark as part of the deal.
by Chris Druce
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