Japanese culinary giant, Toridoll, is set to acquire Fulham Shore, the company behind Franco Manca, in a deal valued at £93 million. This acquisition signifies a premium of approximately 34.8% based on the closing share price from the previous day.
Established 11 years ago, Fulham Shore was named in honour of David Page’s father's fondness for Fulham FC. With a stake of just over 13% in the company, Page stands to receive an estimated £11.8 million from this transaction.
The purchase agreement originates from Great Sea Kitchens, a recently formed entity representing dining behemoth Toridoll, which boasts a portfolio of 5,500 outlets and is credited with successful brands like Marugame Udon. For this acquisition, Toridoll has collaborated with the private equity company, Capdesia.
Toridoll sees immense potential in Fulham Shore, praising its commitment to delivering genuine, superior quality food and beverages at reasonable prices. They identify a considerable opportunity to enhance its presence not only in the UK but also globally, complemented by potential product sales in retail outlets.
David Page, Fulham Shore’s executive chairman, expressed his optimism about the company's standalone future. However, he stated, “After engaging with both Toridoll and Capdesia, we received an offer that, in our view, holds immense value for all stakeholders involved.” He further confirmed that the board of directors wholeheartedly endorses this acquisition to the shareholders. Expertise on this transaction is provided by Singer Capital Markets and Rothschild for Fulham Shore, while Peel Hunt represents the purchasing party.
In conjunction with the acquisition details, Fulham Shore also highlighted its recent business performance. The company reported that its steady trading pace, combined with no Covid-induced closures relative to the past two fiscal years and strategic store expansions, has propelled its annual revenue to approximately £100 million as of March 26.
On the performance front, Fulham Shore commented on the current market trends: “Transport and tourist-centric locations are witnessing robust performance, whereas dining establishments near corporate hubs are yet to recapture their pre-Covid trading vigour.”
Takaya Awata, the chief executive of Toridoll, envisions a bright future with this merger. He believes that with "the inherent strength of the Fulham Shore brands, coupled with our alliance with the specialised restaurant sector fund Capdesia, we are poised to synergize our collective expertise and vast resources to further expedite their growth trajectory.”