Gaucho backers acquire M Restaurants

Gaucho holding company Lomo Bidco - an entity owned by Investec Bank plc and SC Lowy - has acquired M Restaurants for an undisclosed sum.

The transaction, which concluded late yesterday, brings together M Restaurants’ three venues and Gaucho’s sixteen restaurants, with M’s shareholders successfully exiting.

Following the transaction, Lomo Bidco will be renamed ‘Rare Restaurants’ and will act as the holding company for the group. Gaucho and M will continue to operate with independent operational teams, but with a shared head office, with a senior management team overseeing both brands.

Martin Williams, the founder of M who was led Gaucho for the past six months, will assume the role of chief executive of Rare Restaurants.

He will be joined by Jim Kottler, who has recently taken the position of CFO and joins from D&D London and Jenna Bromage who has been appointed brand and marketing director, previously at Mondrian London/Morgan’s Hotel Group. Gemma Meale assumes the group’s HR director position, after joining from the Splendid Hotel Group

Williams said: “I’m excited by the coming together of Gaucho and M Restaurants. Both brands are incredibly close to my heart and I am confident that together with Investec Bank plc and SC Lowy’s backing we have what it takes to build further on the success we’ve already achieved.

“When I created M, I hoped that eventually, we would find the right backers to offer our current shareholders a profitable exit, while propelling the company into a new chapter which would embrace our entrepreneurial spirit and commitment to an outstanding guest experience. I am delighted that we have found what promises to be a perfect partnership.”

Shareholders, Investec and SC Lowy said: “This is an exciting next chapter for both brands within the group. As Gaucho continues to grow steadily and build on an established presence, M’s dynamism and ongoing expansion makes it a perfect complement. We look forward to working with Martin and the team to drive both brands’ success.”

Investment bank Zeus Capital advised Management through the transaction process as well as the M shareholders on the sale.

Dane Houlahan, M&A Managing Director at Zeus, said: “We believe the new strategy behind Gaucho and its subsequent combination with M is a much needed positive piece of news for the UK restaurant sector. It’s been a real pleasure to work with Martin and the wider team and we have no doubt the enlarged group with backing from its new owners will go from strength to strength over the coming years.”