The Restaurant Group agrees to a takeover in a £701 million deal

The Restaurant Group who own Wagamma have agreed to a takeover deal worth £701 million by private equity giant Apollo.

Apollo will pay 65p a share for TRG and the deal values Wagammaa owner’s shares at around £506 million and including debts it is valued at £701 million.

After the announcement of the planned takeover share climbed by 37% to 66p.

TRG chairman Ken Hanna said: “The TRG board and management of TRG have reviewed in detail the strategic options available to the group, resulting in the announcement of the proposed sale of the leisure business.

“The TRG board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment.”

Apollo said it has “closely followed TRG over many years.”

Alex van Hoek, a partner in Apollo’s private equity business, added: “TRG’s business has proven resilient through macroeconomic cycles but the outlook is still one of high interest rates and inflationary pressures and the company now needs the support of patient private capital, to achieve its ambitions.”