19th May, 2014

Risk Capital Partners announces the flotation of Patisserie Holdings plc

Risk Capital Partners is delighted to announce the admission on AIM of Patisserie Holdings plc with a market capitalisation on admission of £170 million

Risk Capital Partners acquired Patisserie Valerie in a Management Buy In transaction in 2006 when the business had eight stores, sales of £8 million and employed 120 people.

During our ownership the business has acquired Druckers Vienna Patisserie, Baker & Spice, Flour Power City Bakery and Philpotts to become the largest patisserie / café business in the UK.

On flotation the business has 138 stores across the UK, had proforma revenues of £70 million and EBITDA of £13.3 million for the year ended 30 September 2013, employs c 2,000 people and on admission to AIM had a market capitalisation of £170 million.

Post flotation the business remains majority owned by the Principals of Risk Capital Partners and the management team.

 

Patisserie Holdings plc

(the “Company” or the “Group”)

Announcement of placing price and commencement of conditional dealings

Patisserie Holdings plc, which operates a leading UK branded café and casual dining group today announces the successful pricing of its initial public offering by way of a conditional placing (the “Placing”) of 46,645,794 new and existing ordinary shares of one penny each (“Ordinary Shares”) at 170 pence per share (the “Placing Price”) with institutional and other investors.

Based on the Placing Price, the market capitalisation of the Company will be £170 million on admission to trading on the AIM Market of the London Stock Exchange becoming effective (“Admission”).

The Company has conditionally raised £32.8 million (before expenses) through the Placing, the net proceeds of which will be used to repay the Group’s existing outstanding senior debt and shareholder loans. In addition, the selling shareholders will receive gross proceeds of£46.5 million pursuant to the Placing.

At Admission, the Company will have 100,000,000 Ordinary Shares in issue with a free float of 48.4 per cent.

Following the Placing, Luke Johnson, the largest shareholder, will own 42.7 per cent. of the Company. The remaining directors and members of senior management will own 5.9 per cent. of the Company.

Conditional dealings will commence in the Ordinary Shares on the London Stock Exchange at 8.00 a.m. on 14 May 2014 under the ticker “CAKE”.

Admission and the commencement of unconditional dealings in the Ordinary Shares are expected to take place at 8.00 a.m. on 19 May 2014.

Commenting on today’s announcement, Luke Johnson, Executive Chairman of Patisserie Holdings plc said:

“Today’s announcement marks a key step in the development of the Group. We have grown the business from 8 stores to 138 today, and I’m delighted that our new investors have recognised the potential to roll out Patisserie Valerie further. We look forward to a strong future as a quoted company.”

The group is a leading UK branded café and casual dining group offering cakes, pastries, snacks, meals and hot and cold drinks from 138 stores and the Flour Power City Bakery in the UK. It operates under the following five differentiated brands across England and Scotland:

· Patisserie Valerie;

· Druckers – Vienna Patisserie;

· Philpotts;

· Baker & Spice; and

· Flour Power City Bakery.

In relation to the Placing and Admission, Canaccord Genuity Limited acted as financial adviser, nominated adviser (“Nomad”) and broker to the Company. Full details of the Placing are included in the admission document of the Company (the “Admission Document”), available on the Company’s website http://investors.patisserieholdings.co.uk/documents.aspx