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Restaurant Group PLC on Tuesday said it has acquired Mexican restaurant chain Barburrito Group Ltd and added it has made an early repayment of its term-loan facilities.
The Wagamama and Frankie & Benny's owner bought the Manchester-based chain for £7 million.
Barburrito currently operates 16 sites in ‘high-footfall locations’, including shopping centres, city centres and transport hubs.
‘Barburrito's strong current trading gives us confidence in its ability to align with and extend TRG's track record of market outperformance,’ Restaurant Group said.
In addition, the company decided to make an early repayment of its £44 million term-loan facilities.
This will reduce its total available debt facilities to £361 million. This debt comprises a £241 million term loan and a £120 million revolving credit facility.
Restaurant Group currently has cash in excess of £190 million and decided to purchase interest caps, to manage the ‘risk of interest rate increase’.
This includes £125 million of debt limiting the sterling overnight index average to 0.8% for a cost of £2.2 million to November 2025 from November 2022.
Restaurant Group explained that the purchase of the caps is supposed to provide further protection for the company over the next few years.
The company maintained its previous guidance for expected profit and loss interest charge at £24 million to £25 million.
Shares were down 0.6% at 43.94 pence each on Tuesday morning in London.
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