Casual Dining Group (CDG) has agreed a refinancing deal including a cash injection of £30m to "fund growth opportunities".
According to the restaurant group, which operates nearly 300 mid-market restaurant brands including Las Iguanas, Café Rouge and Bella Italia, the injection and refinancing led by American private equity company KKR "provides a long-term capital structure for the group, strengthens the balance sheet and positions CDG for growth".
Steve Richards, chief executive of Casual Dining Group, said: "We are delighted to have agreed substantial new investment which establishes a strong foundation to continue to invest in our brands and take advantage of opportunities in the sector as they arise. With no external debt and strong funding, this gives Casual Dining Group a very strong financial platform.
"Against a challenging backdrop, we continue to perform ahead of the market, with total sales up nearly 5% and like-for-like sales up 2.3%, in the past 14 weeks. We have also seen double-digit profit uplift in the period. Our growth initiatives gather pace with delivery, partnership openings and our digital-first approach all driving sales. We have opened seven new concession sites in airports and hotels since the start of the year with an active schedule of UK-owned and international franchise new openings in the pipeline, building on our existing well-invested estate."
The group reported a mixed set of results across its portfolio in its last financial year including an overall pre-tax loss of £60m due to a "difficult trading environment for the casual dining market".
The move was supported by management and all other shareholders, including funds managed by affiliates of Apollo Global Management, LLC and Pemberton Asset Management. KKR and Apollo have been investors in CDG since 2015, providing debt and equity funding, and will remain so.