Wimpy owner beefs up stake in burger market with £120m acquisition
FAMOUS Brands – owner of the Wimpy burger chain – has increased its grip on the sector with the mouth-watering acquisition of Gourmet Burger Kitchen (GBK).
The South African-based group has agreed a £120m deal with Nando’s owner Capricorn Ventures to acquire the entire issued share capital of GBK, which has a string of restaurants across the Midlands.
GBK, launched in Battersea in 2001 by three New Zealanders, is considered one of the pioneers of the premium burger revolution in the UK.
Kevin Hedderwick, group strategic advisor to Famous Brands, said: “Quite simply, GBK is a best in class business and brand, with growing consumer equity, supported by a phenomenal leadership team.
“As far back as 2007 when we acquired the Wimpy business in the UK, the group is on record as saying that we would use our foray into the UK as a beachhead to expand our presence in the market as and when suitable opportunities presented themselves.
“Our investment in the Wimpy UK business has given us invaluable learnings in terms of an understanding of and insight into the local market.”
He said GBK had a strong network of 75 branches across the country, including outlets in Nottingham, The Mailbox and Brindleyplace in Birmingham, the Resorts World complex at the NEC, as well as Leamington Spa, Worcester and Stoke-on-Trent. In addition, there was potential to expand this with a series of new openings.
“Furthermore, there is opportunity to export the brand to South Africa, which would afford Famous Brands representation in the premium burger Fast Casual dining category where we do not currently compete,” added Mr Hedderwick.
