BoS buys Wimpy

The secondary sale of the UK fast food chain provides 3i, Bridgepoint and LDC with an exit from the company that was acquired in 1990.

At a time when secondary sales to other financial buyers are on the rise, Bank of Scotland has led a £15m management buyout of UK fast food chain Wimpy, ending twelve years of ownership by UK private equity firms 3i, Bridgepoint Capital and Lloyds TSB Development Capital.

The three private equity firms acquired the 220-branch fast food chain from Grand Metropolitan for a price of around £10m in 1990. In 2001 the firm reported a profit of £1.5m. Bridgepoint Capital, which at the time of the original transaction was still part of NatWest Bank, confirmed that it had achieved a multiple of three on its original investment.

The management team is being led by John Davison, who is taking over from Max Woolfenden as Wimpy chief executive. Bank of Scotland said the combined debt and equity package was worth £15m.