La Tasca is poised to list on AIM next Wednesday (February 16). Shares – which have all been placed with institutions in a process that is understood to have been three times over-subscribed – will be priced at 110p, valuing the business at £54m, M&C has learnt.
The listing will put the Spanish-themed tapas chain on a p/e ratio of 13.5x, which, as expected, is at a slight discount to The Restaurant Group, its nearest quoted rival.
La Tasca, which generated Ebitda of £3.73m in the six months to 24 October 2004, has raised approximately £19m (net). This will be used to reduce debt to £17m, which gives an enterprise value for the business of £71m.
The management team, led by chief executive James Horler, is understood to be taking £2.7m out of the business through selling existing shares but will retain a 6% stake in the listed company.
Penta Capital, the private equity group that backed a £28m buyout four years ago, is expected to take about £15m out of the business although it will retain a 23% stake.
It is understood the business, which will drop its company name of The Restaurant People Group to be known as La Tasca Group plc, will fund 10 new openings a year plus capital expenditure projects from existing cashflow.
Alongside Horler, the La Tasca board comprises non-executive chairman John Barnes, finance director Martin Evans, managing director Mary McLaughlin and non-executive Ian Edward.
The group currently has 47 restaurants in the UK including two sites under the fledgling brand La Vina, which is also a Spanish-themed tapas concept but aimed at a slightly older customer base, with wet sales accounting for a slightly higher percentage of the sales mix.
It also has two restaurants on the East Coast of America, in Washington and Arlington, Virginia, which it operates directly and a third is planned this year, in Baltimore.
A La Tasca costs between £400,000 and £800,000 to build, is between 2,500 and 8,500 sq ft and typically has 190 covers. Average customer spend is about £13 per visit.
A total of 49,077,092 ordinary shares have been issued.
Altium is acting as nominated adviser and broker to La Tasca.
