VCT News
Beringea sells restaurant chain Ma Potters for £14.15m
8 March 2007 - Beringea, manager of the ProVen VCTs announces the sale of Ma Potters Ltd, a restaurant chain with 16 locations around the UK, to Tragus, owner of the Café Rouge chain.
The sale of Ma Potters for £14.15 million generated a return of 2.5 times Beringea's initial investment and an IRR of 27%. It is expected the sale will result in the payment of another special dividend to ProVen VCT Ordinary Shareholders and ProVen Growth and Income VCT Ordinary Shareholders.
Beringea originally invested in the Ma Potter's branded restaurant business, alongside co-investors Chrysalis VCT, in 2003 to provide capital to roll out the chain nationally. Specialising in establishing restaurants in shopping centre based sites such as Trafford Centre in Manchester, Meadowhall and Glasgow's Xscape, the company grew quickly.
Chrysalis' investment was identical to Beringea's and has generated the same return.
Beringea Director Trevor Hope, a Non-Executive Director of Ma Potters, who led the sale on behalf of the ProVen VCTs commented: "The recent buy-outs and financings of larger restaurant chains has created a positive M&A environment for smaller scale operations. John Gator, the CEO of Ma Potters, and his team, have created a strong business proposition with excellent prospects for future growth and this was reflected in the attractive Tragus offer."
Chrysalis' Robert Wilson, who was also a Non-Executive Director of Ma Potters, added: ''Chrysalis and Beringea backed a strong management team who have been very successful in rolling out Ma Potter's in excellent locations across the UK and creating a business, the acquisition of which is a strong fit with Tragus' own expansion plans.''
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.