Business
Tortilla Acquires Largest European Competitor
Tortilla Acquires Largest European Competitor.
About this update from Tortilla Mexican Grill Ltd.
[{"type":"text","content":"\n\nTortilla Mexican Grill plc\n \nTortilla rolls into France\nAcquiring largest European competitor Fresh Burritos\n \n25 June 2024\n \nTortilla Mexican Grill plc (\"Tortilla\" or \"the Group\"), the largest fast-casual Mexican restaurant group in Europe, today announces its strategic acquisition of Fresh Burritos, the second largest fast-casual Mexican restaurant group in Europe, and largest in France, for a total consideration of €3.95 million.\n \nThis acquisition is the latest step forward in Tortilla's ambitious 'Vital Five' growth strategy, of which key pillars are to develop the brand internationally and double-down on franchise.\n \nKey highlights of the acquisition:\n \n· The acquisition includes:\no 13 company-owned leasehold restaurants, in high-quality locations in Paris and other major French cities, and;\no Rights to the Fresh Burritos brand and network of 19 franchised locations\n· Provides springboard for franchise growth across Europe\n· Compelling synergies for the enlarged Group, including the introduction of a French Central Production Kitchen, as well as wider buying power, operational and marketing efficiencies.\n· New Tortilla European sub-Board committee created, chaired by Group Non-Executive Director and former YUM! European Franchise Division CFO, Francesca Tiritiello. Joined by newly appointed Non-Executive Director of the sub-Board committee, Gilles Boehringer, former VP of Development & Franchise for KFC France. An experienced European hospitality Managing Director has been appointed and will join in September.\n· Tortilla has acquired Fresh Burritos from FBH through a combination of cash payment and bank debt roll over. The deal is funded from the Group's existing debt facilities and expected to contribute £2.5m of additional annual adjusted EBITDA (pre-IFRS 16) at 24 months maturation.\n \nAndy Naylor, Chief Executive of Tortilla, commented:\n\"Tortilla's international ambitions are no secret, and acquiring Fresh Burritos is our gateway to mainland Europe. With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad. We're set to leverage this acquisition, just in time for the Paris Olympics!\n \nWe've assembled a top-tier Euro...