Tortilla Mexican Grill (LON: MEX) is acquiring rival fast-casual Mexican restaurants operator Chilango. In the medium-term this could be a highly earnings enhancing deal.
Investment firm RDCP currently owns Chilango. Tortilla Mexican Grill will pay up to £2.75m for the restaurant chain. In 2021, Chilango generated revenues of £7.3m and made a small loss.
Chilango has eight sites in the London and Manchester. Just like Tortilla Mexican Grill they offer eat-in, takeaway and delivery. The two chains have similar product offerings and the Chilango brand will be retained.
There could be a...
