Restaurant Brands Iberia, the restaurant company that operates the Burger King business in Spain, the Tim Hortons cafeterias and the Popeye’s specialized chicken chain, recorded losses of 7.08 million euros last year “for the fees of legal advisors or other professionals related to the structural organization” that took place in 2021 in relation to the purchase of the company by the venture capital fund Cinven, according to the accounts deposited in the Mercantile Registry. The cost of these “independent professional services” amounted to 6.9 million.
The corporate operation, which valued the firm at around €1 billion, was announced in June and was the largest acquisition in the restaurant sector in Spain. Since then, the fund private equity controls 100% of the company through Elvis Bidco Iberia, a subsidiary of a network of companies based in the United Kingdom. The previous shareholders were QMI Fonciere (90%) and Burger King Europe (10%). “It should be noted that in the 2021 financial year the company has recorded a loss of 7.08 million euros, which is explained by (non-recurring) fees from legal advisors or other professionals related to the aforementioned structural reorganization”, referring to the change in the shareholding.
The cost of the operation has altered the firm’s accounts. Although it recovered “pre-covid billing levels” in 2021, according to the management report, it recorded losses of those 7.08 million, which follow a 2020 already very complicated by the pandemic, which closed with red numbers for 15, 14 million. The turnover is not comparable either: it amounted to 5.3 million last year, compared to 9.25 million the previous year, but it must be taken into account that this latest result included 9.15 million extraordinary income from dividends, according to the company in the document.
The company, the document states, “continues to promote the expansion plan for its brands.” As of December 31, 2021, through its investees, it owned 584 franchised restaurants (compared to 501 at the end of 2020), including 525 Burger King in Spain, 23 Burger King in Portugal, 32 Popeyes restaurants in Spain and four Tim Hortons coffee shops in Spain. In addition, it had another 500 restaurants managed by third-party franchisees in Spain, Portugal, Andorra and Gibraltar.
The purchase of the company by Cinven exceeded the acquisition of Grupo Vips by the Mexicans of Alsea for 500 million or the takeover bid by KKR to Telepizza, which valued the brand at 600 million. ING and Altamar were advisors to Cinven in the operation, since Clifford Chance was in charge of the legal part and Deloitte of the prosecutor. On the vendor side, Allen Overy and Garrigues worked together with QMI Fonciere on the Burger King Europe side.
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