Casual Dining Group (CDG) will receive a £30m cash injection as part of a refinance deal, in what is becoming a common path for catering companies to pursue growth.
The restaurant group operates nearly 300 mid-market brands such as Las Iguanas, Café Rouge and Bella Italia, and the refinancing deal, led by American private equity company KKR, “provides a long-term capital structure for the group, strengthens the balance sheet and positions CDG for growth”.
In what has been a challenging time within the casual dining sector, CDG reported a mixed set of results during its last financial year with a pre-tax loss across its portfolio of £60m.
Steve Richards, chief executive of CDG, was quoted in The Caterer as saying: “We are delighted to have agreed substantial new investment which establishes a strong foundation to continue to invest in our brands and take advantage of opportunities in the sector as they arise.”
Mark Kozo, Head of Marketing at Portman Asset Finance, said: “When it comes to planning for growth, many catering businesses are finding that accessing affordable finance can free them up to reach their potential.
“We have helped arrange refinance agreements for a number of restaurants, allowing them to release locked-in equity from their current assets so they can spend the unlocked funds however they see fit.
“Alternatively, when cashflow is running low commercial loans are great for investing in areas like additional marketing or staff salaries, or simply tiding companies over during lean spells.
“We also provide lease finance deals where restaurant owners can invest in their futures by acquiring the latest new equipment or resources without tying up their working capital. This is ideal if you are planning on refurbishing your premises to give your place an eye-catching new look, or if you are setting up a new restaurant from scratch.”
Discover more about our finance products for catering businesses here, or you can discuss your specific requirements with our expert Account Managers on 01604 321 995.