TDR Capital takes bigger bite of Popeyes

A week in consumer deals; IK promotes two to partner.

With inflation down from its recent highs across Europe, the consumer sector should be likely to benefit. So it’s no surprise to see some activity there.

Freshest of these deals is TDR Capital increasing its stake in fast-food restaurant Popeyes UK. I’ll also recap other deals in the segment, including Perwyn’s strategic investment in a grocery business and an exit by The Riverside Company. We also have a report from Datasite to compare notes with regarding the consumer segment.

January continues to be a busy month for people moves and promotions. This time, IK Partners has made a double promotion, elevating two members of the firm’s mid-cap investment team to partner level.

Time to eat

I hope you’ve had some breakfast, as food and drink are strongly featured in this part of the newsletter. This week we’ve seen a slew of consumer deals in the food segment, so let’s take a look at the selection.

Kicking off with fast food, TDR Capital has increased its shareholding in Popeyes UK, a fried chicken fast food restaurant chain, taking effective control from dual investor Ring International Holdings, which remains invested on a minority basis.

Popeyes operates from 38 locations across the UK and plans to open over 30 new locations in 2024, according to a press statement.

TDR initially invested in Popeyes in July.

Pizza the action

Next on the menu we have Perwyn’s investment in Crosta & Mollica, a B-Corp certified branded grocery business that sells pizza, gelato and aperitivo snacks.

Perwyn will support the business’ international expansion while maintaining momentum in the UK through sustained product innovation, customer service and brand investment, according to a press statement.

Ice cream

Time for some dessert. PAG Private Equity has agreed to acquire a majority controlling stake in Food Union Europe, a Riga -based ice cream company.

PAG originally invested in Food Union Europe since 2017.

Drink time

For those looking for a drink, let’s take a look at an exit. The Riverside Company sold E&A Scheer and its subsidiary, the Main Rum Company, to Platinum Equity.

E&A Scheer sources and sells tailor-made rum blends and rare, aged rums in cask. The company is based in Amsterdam.

“Since its investment in E&A Scheer in February 2019, Riverside has focused on growing the company’s top line by enlarging and internationalising the customer base, as well as improving profitability through an increased focus on ultra-premium rum categories such as rare and aged casks,” said Damien Gaudin, partner at Riverside Europe.

Consumer deals got a mention in Datasite’s Deal Drivers: EMEA 2024 Outlook report. Companies in the sector have been performing a “delicate dance” since inflation took hold, the report said, juggling between raising revenues while trying not to impact sales.

Megadeals were nowhere to be seen in 2023, with the largest deal in the consumer segment being a $4.8 billion rescue package for French retail group Casino Guichard-Perrachon, according to Datasite.

However, looking ahead to 2024, there is “ample volume” waiting in the wings, the report said.

Double promotion

On Tuesday I compiled a recap of the latest people moves. That list could probably be updated daily in January, but let’s just look at one promotion announcement today.

IK Partners announced the promotion of Carl Jakobsson and Frederik Jacobs to partner in the mid-cap investment teams in the Nordics and the Benelux respectively.

Jakobsson joined IK’s Stockholm office in 2013 and specialises in the business services sector. He has served on the boards of several portfolio companies, including Aspia, Netel, Evac and Ramudden.

Based in Amsterdam, Jakobs joined IK in 2014. He has been involved in several transactions across the Benelux region and he focuses on the healthcare sector.