Wagamama gets £13m for expansion

Noodle chain Wagamama is set to launch an aggressive expansion programme after securing £13m from investors.

The agreement sees long-time backer and major shareholder Graphite Capital realise some of its original investment in a deal that values Wagamama at £63m.

Investment group Hutton Collins, which had been linked with an outright purchase of the company at the start of the year, has injected £17m into the business in exchange for a 15% share; and Wagamama's management have increased their shareholding in the business by 2% to 15%.

Wagamama's financial director Steve Hill said: "With the additional money we can, even conservatively, double the size of the company in the UK within three years."

Wagamama had been tipped to sell to venture capitalists Apax Partners, but pulled out of discussions in August.

by Chris Druce

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