Wrap it Up!, the gourmet wrap concept led by Tayub Mushtaq, has confirmed it has acquired the three-strong Mexican burrito chain Adobo for an undisclosed cash sum.
The 12-strong company said that the deal also involved a share amount of 2% in Wrap It Up, with the cash element being paid by franchisees who take the sites. It said that deal will result in a 32% increase in overall store revenue.
Adobo co-founders Craig Fraser and Mark Walker will stay involved, Fraser in an operations capacity and Walker in a franchising capacity.
The group said: “This is fantastic as they come with a wealth of experience.”
The confirmation of the deal came as the group broke through its crowdfunding target of £400k with still 32 days of fundraising to go. It has so far raised £436.7k from 200 investors through Crowdcube.
According to the Sunday Telegraph, the acquisition of Adobo is expected to add a further £1m of revenue to the 12-strong group’s annual sales.
Wrap It Up!, which believes it can eventually grow to 100 sites, is set to rebrand the existing Adobo sites in Holdorn, Artillery Row and Crown Passage, near Green Park, over the coming months.
In 2013, the company acquired the three-strong Flying Burrito chain for an undisclosed sum.
The fundraising will help complete work on a centralised production kitchen in Stratford, east London, to service satellite stores around London.
Turnover last year was £3.1m, a 53% increase on the year before.
It will soon open its first regional site in Manchester’s Deansgate area.
The group has a number of other towns and cities it is looking at as well as considering a cluster of stores in Manchester but stressed the first store will be a trial and no decisions for further expansion will be made until the Deansgate store is trading as expected.
