A deal has been struck between Clapham House and Nando's Group Holdings and its private equity owner Capricorn Ventures International, as per which the chicken-focused fast-food chain will take hold the 53 GBK and six Real Greek sites.
This sale agreement is said to have given rise to various new ventures as well. According to speculations, this summer Clapham House had made several efforts to convince Capricorn to elevate its offer price.
This takeover however was quite unexpected, for the financial crisis and recession had resulted in slowed expansion plan and a fall down in restaurant valuations. Although, the analysts looked disappointed, but there was nothing that could be done, for Capricorn's stake in the business together with investor fears over debt levels to fund expansion, were some reasons for the limited board's options.
The Clapham House team is led by Chairman David Page and Chief Executive Paul Campbell. The team is said to have accepted the offer because of the coming VAT rise in January, price discounting in the sector, funding constraints in the equity markets and the very difficult trading environment.
The UK arm of the South African group Nando said, "As macroeconomic weakness has persisted in the UK, the trading environment for restaurant businesses in the UK has been difficult. This is evidenced by Clapham House's volatile weekly trading performance".