Epiris announces the acquisition of the UK franchise of TGI Fridays

POSTED 23 December 2014

Epiris is pleased to announce that it has agreed the acquisition of the UK franchise of TGI Fridays, the American-styled restaurant chain from TGI Fridays® Restaurants, a Company owned by Sentinel Capital Partners and TriArtisan Capital Partners. Electra Private Equity PLC has invested £100 million of equity in the deal alongside TGI Fridays management team, led by Karen Forrester. Debt facilities for the transaction have been provided by ICG and Barclays.

TGI Fridays is an authentic American casual restaurant chain offering a fun and lively dining experience for both young adults and families alike. The group has 66 UK restaurants, operating from a range of locations, including city centres, shopping centres and leisure parks. TGI Fridays restaurants focus on engagement with guests and the business prides itself on creating a memorable experience thanks to its energetic and enthusiastic team and lively atmosphere.

Alex Fortescue, Chief Investment Partner of Epiris, said:

"This is the first new investment we have made since announcing a record level of investment for the year to 30 September 2014 and we are delighted to have been able to put more of Electra Private Equity's cash to work in such a promising opportunity. Our deal flow remains strong and we are confident that 2015 will yield more exciting opportunities."

Bill Priestley, Partner at Epiris, said:

"TGI Fridays is exactly what we look for in an investment - an attractive, differentiated business with an impressive financial track record and an excellent management team. We look forward to working with Karen Forrester and her team to develop the business further through a mixture of organic growth and new restaurant openings, while at the same time continuing to improve the existing sites."

Karen Forrester, CEO of TGI Fridays UK, said:

"In Epiris we are delighted to have found a long-term partner capable of supporting our growth ambitions, as we look to further expand TGI Fridays share of the UK market.

"TGI Fridays best-in-class service, unique bars and exciting dining environments create a unique guest experience with a wide demographic appeal. The enthusiasm of our team members is the key to this and they will remain at the centre of our offering."

Bill Priestley, Sarah Williams and Shakira Adigun-Boaye are responsible for the investment in TGI Fridays.

In the year to 30 September 2014 Epiris announced a record level of investment, investing £410 million on behalf of its major client Electra Private Equity, completing three control buyouts and, including co-investments and bolt-on transactions, 10 deals in total.

Epiris refers to Epiris LLP acting on behalf of its client Electra Private Equity PLC.

Ends

For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Epiris
+44 (0)20 7306 3902

Note to Editors:

About Epiris LLP
Epiris is an independent private equity fund manager with over 25 years' experience in the mid-market. During the last 25 years it has invested in excess of £4.4 billion in more than 200 deals and realised £6.3 billion. As at 30 September 2014, the firm had funds under management of over £1.6 billion including capital available for investment of circa £300 million.

Epiris' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.

The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2014, Electra has seen diluted NAV per share growth of 262% (equivalent to a ten-year annualised return on equity of 14%) compared to a 120% increase in the FTSE All-Share.

For further information please visit www.electrapartners.com.

Epiris LLP is authorised and regulated by the Financial Conduct Authority.

About Sentinel Capital Partners
Sentinel, who together with Tri-Artisan Capital partners acquired the Global Business and Brand of TGI Fridays in July 2014, are the major Shareholder and have extensive restaurant and franchising investment experience. Sentinel has completed numerous acquisitions of both franchisors and franchisees, including Checkers/Rally's, the largest franchisor and operator of dual drive-thru hamburger QSRs in the United States; Newk's Eatery, a rapidly growing fast-casual concept in the Southeast United States; Falcon Holdings, the largest franchisee of Church's Chicken restaurants; Huddle House, a leading franchisor of family dining restaurants in the Southeast; Massage Envy, the nation's largest provider and franchisor of therapeutic massage and spa services; and Southern California Pizza Company, a 223-unit Pizza Hut franchisee operating in the greater Los Angeles market.

For more information about Sentinel, visit www.sentinelpartners.com.

About TriArtisan Capital Partners
TriArtisan Capital Partners is the merchant banking arm of Morgan Joseph TriArtisan LLC. TriArtisan makes investments in market leading companies in partnership with accomplished management, leading private equity funds and institutional limited partners.

About TGI Fridays
Spearheading a social revolution, TGI Fridays offers authentic American food, signature cocktails, and a lively, personalised experience. With a continually evolving, contemporary menu, it's the perfect place for casual cocktails, a quick tasty bite, or a longer dinner with friends.

With a rich food and drink heritage, TGI Fridays brought both happy hour and flair bartending to the UK - something that it's famous for across the world. 7,000 TGI Fridays bartenders now compete annually for the title of TGI Fridays World Bartender Champion - one of the most coveted prizes in the bartending industry. The TGI Fridays brand is present in 61 countries around the Globe and is headquartered in Dallas, Texas.

TGI Fridays in the UK has been recognised by the industry with many award wins including:

• Peach Icon Award 2013 - Karen Forrester
• Sunday Times Best Places to Work 2013 - Awarded 3 Stars (Extraordinary)
• Eat Out Awards 2013 - Winner (Team of the Year)

For more information, visit www.tgifridays.co.uk or www.fridays.com.