Gaucho, the operator of the eponymous Argentinean steakhouse concept and sister brand CAU, is believed to have appointed advisers to assess its options, which could lead to a sale of the business, M&C Report understands.
It is thought that Intermediate Capital Group (ICG), which backed the management buyout of the Zeev Godik-led business at the end of 2007, has started to test the water in terms of interest in the business after receiving an approach for the company that currently operates 17 Gaucho sites and 13 CAU restaurants.
It has appointed Canaccord Genuity to advise on its next step, but it is thought that an official process is not set to begin until the end of the summer.
M&C Report understands that the two brands are currently generated a combined EBITDA of £12m, which given current multiples would value the business at around £110m.
ICG backed the management buyout of the business after it aborted plans to list on the stock market, a process that was expected to value the business at more than £100m.
The business reported a 3% rise in sales in its latest published accounts for the year to 31 December 2013 to c£55m. EBITDA for the year was £9.6m compared to 2012 of £10m.
CAU, the group’s more casual dining steakhouse concept, has been its main growth driver over the last few years and is thought will remain the main expansion play going forward.
The brand, which is led by Graham Hall, recently opened in Liverpool and Reading and has further openings lined up in Glasgow, Southampton, Bath, Birmingham and Harrogate over the next 18 months.
It recently opened its first site in central London in St Katharine’s Dock.
Last year, Gaucho promoted Tracey Matthews from group HR director to managing director, after the departure of Martin Williams.
Williams stepped down from the Intermediate Capital Group-backed company after over 10 years as managing director, to start his own venture M Restaurants.
Gaucho currently operates 14 sites under its eponymous brand in the UK, including 12 sites in London, plus sites in Dubai, Hong Kong and Buenos Aires.
