Mar 13, 2013

Risk Capital Partners sells its stake in Giraffe to Tesco

Risk Capital Partners (“RCP”) is pleased to announce that it has sold its entire minority holding in restaurant company Giraffe to Tesco. The enterprise value of the whole transaction is £48.6 million, which represents a multiple of 8x RCP’s original valuation.

During RCP’s partnership with Giraffe’s Founders Russel & Juliette Joffe and Andrew Jacobs, Giraffe has grown from 7 central London restaurants to 48 locations across the UK and one franchise in Dubai. The UK estate now stretches from Aberdeen to Exeter and includes a number of sites at UK airports, as well as formats such as Giraffe Stop! at Kings Cross.

Luke Johnson and Ben Redmond of RCP have been heavily involved in many of the key strategic decisions for the business exemplified by site selection, negotiating the debt funding package for site rollout and leading the transformational acquisition of a number of sites from Tootsies in a pre pack acquisition for Giraffe in 2009.

Giraffe’s pace of growth attracted 3i as a co-investor in 2006, with whom RCP and the Founders have worked well over the past 6 ½ years.

Russel Joffe, Managing Director of Giraffe, commented: “In 2004 Risk Capital Partners gave us the confidence to believe that Giraffe could become a much larger business. Since their investment, Giraffe has been transformed both operationally and financially. I have greatly valued their input and guidance. ”

Luke Johnson, Chairman of Giraffe since 2004, commented: “Giraffe is a great business and we have really enjoyed working with Russel and his wider team for the past nine years. When we invested in 2004 we believed that Giraffe could be a national business; the deal with Tesco vindicates this vision. We wish Russel, his management team and his ambitious new owners at Tesco well as they embark on the next exciting phase of Giraffe’s growth.”