Apollo Global Management has agreed to acquire The Restaurant Group for £506 million, emphasizing a commitment to enhance its operational strategy amid a challenging hospitality environment in the UK.

Overview of the Deal

Apollo Global Management, a prominent US private equity firm, has finalized an all-cash acquisition of The Restaurant Group (LSE:RTN) for a total transaction value of £506 million. This deal was announced on October 12, 2023, and is set to reward shareholders with 65 pence each, representing a significant premium of 63% over the past 12-month average and 34% over the previous day's closing price of 48 pence. The targeted completion date for the transaction is early 2024, and it has gained unanimous approval from The Restaurant Group's Board of Directors.

Information on the Target

The Restaurant Group plc (TRG) is a prominent UK-based operator of over 400 restaurants and public houses, renowned for a diverse portfolio of brands, including Wagamama, Frankie & Benny’s, and Barburrito. Established in 1987 and headquartered in London, the company has successfully navigated various market conditions but has faced challenges in maintaining margins in recent times. Its Concessions business further extends its reach, primarily operating in UK airports.

As of November 22, 2023, TRG holds a market capitalization of approximately $625.25 million and an enterprise value of $890.13 million. With substantial operations encompassing 16,000+ employees, TRG reported revenues of $1.18 billion