Private equity-backed café chain Patisserie Valerie is to float on London’s AIM market.
It is seeking to raise approximately £33m, the net proceeds of which will be used, amongst other things, to repay all of the Group’s existing outstanding senior debt of approximately £21.9m and shareholder loans of approximately £10.8m.
In addition, the selling shareholders are expected to offer existing shares for sale of up to £55m.
Patisserie Holdings is the UK’s largest patisserie cafe chain with 138 sites nationwide. The company operates five brands – Patisserie Valerie, Druckers – Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City
Risk Capital Partners backed the acquisition of Patisserie Valerie in 2006. At the time it had eight sites in Central London. The company subsequently acquired Druckers Vienna Patisserie in 2007 and Baker & Spice in 2009, Flour Power City Bakery in 2013 and Philpotts in 2014.
The group’s strategy is focused on continuing to deliver growth through enhancing the existing store estate and opening new stores, funded by internally generated cash flow, it said.
Luke Johnson, executive chairman of Patisserie Holdings and chairman of Risk Capital, said, “Patisserie Holdings has a leading position in an attractive market, built around five differ rentiated brands. The management team has an excellent track record in the sector and has grown the business from eight stores in 2006 to more than 130 stores today, delivering seven years of uninterrupted increases in revenue and EBITDA.
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