TRG offloads leisure business to Big Table Group

TRG has announced that it has entered into an agreement for the proposed sale of its leisure business comprising 75 trading sites and associated restaurant and management team employees to the Big Table Group.  

As part of the transaction, TRG will pay a cash contribution of £7.5m to the Big Table Group. TRG’s leisure business consists primarily of the Frankie & Benny’s and Chiquito brands. The transaction is expected to complete in early Q4 2023.

As part of the ongoing review of its strategic options, the Board of TRG have concluded that a sale of its loss making  leisure business will significantly accelerate the group’s core strategic goals of adjusted EBITDA margin accretion and deleveraging.  

The transaction will create a high-quality retained group consisting of the three divisions of Wagamama, pubs and concessions which have delivered very strong like-for-like sales and adjusted EBITDA growth during the first half of 2023, with appealing long-term prospects.

The board said it is continuing to actively explore its strategic options to further accelerate margin accretion and deleveraging.

Andy Hornby, chief executive officer of TRG, said: “A sale of our leisure business significantly accelerates our medium-term strategic plans to increase adjusted EBITDA margins and reduce leverage. 

“On behalf of TRG, I would like to express our massive thanks to the extraordinarily hardworking and dedicated teams across the leisure business who have made huge improvements in the customer proposition over the last few years. We wish them all well as part of the Big Table Group.”

Alan Morgan, chief executive officer of the Big Table Group, added: “Creating, developing and acquiring brands that complement our existing portfolio whilst offering widespread consumer appeal is a fundamental part of our growth strategy. This exciting acquisition forms part of that strategy and we are delighted to be welcoming this new team into The Big Table Group.”