Chiquito owner The Restaurant Group to bid £600m for Wagamama

The Restaurant Group (TRG), which owns brands such as Frankie & Benny’s, Chiquito and Garfunkel’s, is in advanced negotiations to acquire Asian fusion restaurant chain Wagamama for £600m.

TRG is now the preferred bidder in the sales process, which was initiated in June by Goldman Sachs on behalf of Wagamama’s private equity backers Duke Street and Hutton Collins.

The acquisition will mark a turning point for TRG, which was forced to close a string of venues after issuing multiple profit warnings in 2016. Though the group is only itself valued at £600m, the deal would be funded by an equity issue and a significant debt package.

TRG has 509 restaurants to its name, while Wagamama would add just under 200 more to the portfolio. The chain reported rising earnings of £45.7m in April, and turnover of £300.6m.

The news comes after reports TRG is set to acquire Midlands pub chain Peach Pubs, amid falling sales for the restaurant firm.

TRG declined to comment on the news, while Wagamama did not respond to a request for comment.