Restaurant Group in talks on acquisition with gastropub chain Peach Pubs
The Restaurant Group is in talks with Peach Pubs over a possible takeover of the gastropub chain.
Talks are still at an early stage and are not exclusive, with no guarantee of a deal, City PM understands.
The Restaurant Group, the listed owner of brands such as Frankie and Benny’s and Garfunkel’s, has struggled in recent months amid weakness in the broader casual dining sector.
Peach Pubs owns 20 pubs scattered through the home counties and the Midlands.
Peach has hired accounting and consultancy firm BDO to advise on a sale for around £20m, according to the Sunday Times, which first reported the story.
The firm, which is currently owned by its directors, was founded in 2002 Peach with the opening of the Rose and Crown in Warwick.
One of the three founders, Lee Cash, was previously general manager of Le Petit Blanc in Birmingham, a restaurant owned by famous chef Raymond Blanc. The three founders own almost 80 per cent of the business, according to the firm’s latest annual report.
The firm warned that it was squeezed by “mounting pressure” from business rates, a rising minimum wage and cost inflation amid a difficult period for consumer spending.
Peach delivered “modest” growth last year, with turnover hitting £25.6m. It made a profit of almost £550,000 for 2017. The highest-paid director was paid £148,400, almost £50,000 less than the previous year.
The Restaurant Group declined to comment. Peach Pubs could not be reached for comment.