UK-based Business Growth Fund has invested 6.25 million pounds ($10 million) of growth capital for a minority stake in London-based Peyton and Byrne. The restaurant group is a retail bakery and events business.
Business Growth Fund (BGF), established to help the UK’s fast growing smaller and medium sized businesses, today announced that is has invested £6.25 million of growth capital for a minority stake in London-based Peyton and Byrne Limited (Peyton and Byrne), the restaurant group, retail bakery and events business.
Peyton and Byrne operates in three distinct areas. It currently operates restaurants at eight iconic London visitor attractions including The National Gallery, the Royal Academy of Arts and Kew Gardens. Peyton Events provides catering for private functions at twenty high profile venues in London such as The Wallace Collection and Lancaster House. And finally, the business runs retail bakery and café outlets in central London locations offering a modern take on British baking traditions.
The business was founded in 2005 by the renowned restaurateur and face of BBC Two’s Great British Menu Oliver Peyton along with his sister Siobhan Peyton, who holds the role of CEO. Oliver entered the restaurant trade in the early nineties when he opened the iconic Atlantic Bar & Grill. In 2004, Peyton launched the eco-friendly ‘Inn the Park’ in the heart of St James’s Park, the start of the current Peyton and Byrne collection of cafés and restaurants. Oliver was awarded an OBE earlier this year for services to the hospitality industry and has worked with Siobhan throughout the development of Peyton and Byrne along with other family members, Caitriona and Marie.
In 2012 Peyton and Byrne delivered nearly £20 million of revenues and has a track record of increasing turnover at each of its venues within the first year of operation.
London is one of the most popular visitor destinations globally, attracting both domestic and overseas tourists. The museums and galleries sector that Peyton and Byrne operate in is the largest and fastest growing sector within the visitor attractions market. On the events side of the business, the company catered over 650 events in 2011 including corporate functions, weddings, bespoke parties and major conferences.
BGF’s £6.25 million investment will help accelerate the company’s roll-out programme of high-street retail bakeries over the next four years and facilitate new restaurant launches. It will also fund continued investment in people and as a result of this expansion, the company expects to create approximately one hundred new jobs.
In addition to funding, BGF has contributed additional support to the company through the introduction of Mike Johnson as non-executive Chairman. Mike is the former Managing Director of the Corporate Services and Leisure Division at Sodexo UK and was the CEO of Whitbread’s restaurant division which included the Costa, TGI Fridays and Cafe Rouge brands.
BGF will take a minority stake in Peyton and Byrne and Alistair Brew will join the board. The investment represents BGF’s fifth investment in a London based business and its third investment in the leisure and hospitality sector. Peyton and Byrne was introduced to BGF by Sam Fuller, Managing Director and Head of Leisure at Altium.
Alistair Brew, Investment Director for BGF commented:
“In Oliver, Siobhan and the team you have a fantastic mix of people who are extremely passionate not only about a business they have grown over the past seven years and the brand associated with it, but also about delivering great food and service at some of London’s most iconic venues. A large part of Peyton and Byrne’s growth will come from expanding the portfolio of bakery sites and restaurants and we felt that BGF’s mix of patient growth capital and desire to provide additional help and expertise across the business was an ideal fit for the company.
“With the injection of funding, a strengthened management team and multiple growth drivers across all areas of the business, we look forward to being part of an exciting and growing brand in the UK.”
Oliver Peyton, commented:
“Peyton and Byrne has established itself in some of the finest venues in the world and we believe that now is the right time for us to take the next step in our growth. We know that there are lots of opportunities for our Company both in our existing venues, in other premium visitor attractions and important iconic cultural venues, where we will continue to expand.
“British baking has come of age in this country and I believe we have surrounded ourselves with a team of people who will forge a real British presence on the high street through Peyton and Byrne shops, based on solid principles of genuinely handmade, freshly baked goods.
“BGF are offering the chance to take full advantage of the opportunities available to us to and it is absolutely fantastic to see British retail businesses being backed in this way. We liked the fact that BGF is providing expansion capital to high growth businesses like ours; the type of funding that will continue to contribute to the recovery of the UK economy.”
Advisors on the transaction were:
Peyton and Byrne:
Corporate Finance – Altium Capital
Legal – Speechly Bircham
Tax – Brebners
Financial due diligence – Baker Tilly
Legal – CMS Cameron McKenna
Notes to editors:
About Business Growth Fund:
Business Growth Fund has been established to help Britain’s fast growing smaller and medium sized businesses. Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital. As such BGF hopes to be a catalyst for growth among smaller UK companies.
BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS, and Standard Chartered. BGF is managed completely autonomously with an independent management team.
BGF is one of a range of initiatives designed to forge a new relationship between the banking sector and UK businesses, and BGF works in close collaboration with the British Bankers’ Association as well as other key business organisations across the UK.
About Peyton and Byrne:
Over the last few years, Oliver Peyton has helped to transform the dining experience in public spaces, by significantly improving the quality of the food and drink offering within many of London’s famous national institutions and parks. A new restaurant and bar at the Keeper’s House, launching in spring 2013 will mark Peyton and Byrne’s ninth restaurant, adding to Restaurant at the Royal Academy of Arts, Inn the Park, The Wallace Restaurant, The National Café, The National Dining Rooms, The Orangery and Pavilion, both at Kew Gardens and The ICA Café Bar. In addition Peyton and Byrne also run several bakeries and cafés, located at The British Library, Heal’s (Tottenham Court Road), St Pancras Station, The Wellcome Collection and their most recent opening St Giles, near Covent Garden.