Wagamama is being sold to the Frankie & Benny owner in a £559 million deal.
The Restaurant Group (TRG) will buy the casual dining chain in order to grow amid the difficult trading conditions, hitting food chains such as Prezzo and Byron.
“Wagamama is a fantastic brand, with a market leading pan-Asian proposition, which has consistently outperformed the casual dining market in recent years,” said The Restaurant Group’s chief executive, Andy McCue.
“This transaction is an exciting and transformative opportunity to create a business which can pursue a truly multi-pronged growth strategy and create substantial value for our shareholders.”
The transaction not only gives us a great brand but also creates a business with a multi-pronged growth strategy which will enhance earnings with continued selective UK rollout, accelerated via conversions of some TRG sites; by further leveraging the brand in Concessions both in the UK and internationally; by maximising the opportunities presented by the rapidly growing delivery sector; and by optimising the potential within international markets,” he added in a statement.
The deal will be partly funded through a £315 million cash call on the group’s shareholders.
Wagamama has 133 restaurants in the UK with a further five in the US and 58 across Europe, the Middle East and New Zealand.
This will add to the 381 restaurants owned by The Restaurant Group, which employs over 15,000 people.
Last year, the dining chain reported a revenue of £307 million and underlying earnings of £43 million last year.
In recent years, The Restaurant Group has issued a number of profit warnings amid a boardroom overhaul. Since the appointment of former Paddy Power boss, McCue, things at the group has stabilised.
Shares in The Restaurant Group (LON: RTN) are trading at 296,00 (0802GMT).