Japanese group to buy Franco Manca owner in £100mn cash deal

Japanese restaurant group Toridoll is to buy Franco Manca owner Fulham Shore for £93.4mn and plans to expand the chain internationally.

The all-cash offer valued the UK casual dining group at 14.15p a share, a 34.8 per cent premium on Tuesday’s closing price, and received unanimous approval from the board.

Private equity firm Capdesia, which focuses on food services and owns a minority stake in sushi chain Wasabi, will partner with Toridoll to expand Fulham Shore internationally. The firm has an option to buy 49 per cent of the Toridoll subsidiary that is purchasing the UK group.

Shareholders will be asked to vote on the deal, which will need to pass a 75 per cent approval threshold to go ahead.

Aim-listed Fulham Shore, which also owns the Real Greek chain, operates 93 restaurants in the UK.

“We have the opportunity to leverage our combined expertise and significant resources to accelerate their growth even further,” said Takaya Awata, president and chief executive of Toridoll.

David Page, executive chair of Fulham Shore, said the takeover would help the company, which was founded in 2012, “fulfil its long-term potential”.

Fulham Shore bought Franco Manca, which traces its origins back to a single sourdough pizza spot in south London’s Brixton market, in 2014, and expanded the restaurant from 10 outlets in the UK capital to 71 nationwide.

Tokyo-listed Toridoll generated sales of around £1bn last year and runs brands such as Marugame Udon, Shoryu and Wok to Walk. It has previously announced plans to expand the business to 5,500 stores worldwide.