Burger chain Byron sale goes to first round
First-round bids for upmarket burger chain Byron will be submitted this week after owner Gondola Holdings put the chain up for sale earlier this year.
Private equity companies interested in the 30-strong group of restaurants will be bidding on an asking price of £100m, as determined by corporate finance firm DC Advisory.
Byron, which is based primarily in London, is expanding swiftly expanding while at the same time remaining on track to achieve underlying profits of more than £10m this financial year, according to the Independent.
Pre-tax profits at Byron nearly doubled to £2.2m, on turnover of £28.6m, for the 12 months to July 2012, according to figures posted at Companies House.
Among the line-up of private equity firms expected to be interested in buying Byron from Cinven-controlled Gondola are LDC, TA Associates, Graphite Capital, Investcorp, Phoenix Equity Partners, Equistone and Lion Capital.
Competition is already stiff in the upmarket burger sector with Byron up against Gourmet Burger Kitchen and Fine Burger Company, but the market is set to get more crowded with US giant Five Guys expected to launch this year.
This chain, named after the founding Murrell family's five brothers, has more than 1,000 restaurants in North America and will open its first outlet in London this summer.
Charles Dunstone, founder and chairman of Carphone Warehouse, paved the way for the UK launch of Five Guys by forming a joint venture with its parent company last year.