CBPE seeks tasty return from Côte

The UK-based firm, which is understood to have invested approximately £100m in the restaurant chain, made the acquisition from its £405 million Fund VIII.

UK mid-market firm CBPE Capital has acquired a majority stake in restaurant group Côte Restaurants, according to a statement. 

The deal value was undisclosed, but it is understood the firm paid approximately £100 million.

CBPE declined to comment beyond the statement. 

Côte offers “simple freshly prepared French food at value for money prices”. It was founded by a group of experienced restaurateurs, who opened the first restaurant in Wimbledon, South West London, in 2007. 

The Côte management team and founders will be re-investing in the business alongside CBPE. Nick Fiddler, one of Côte’s founders will join the board as a non-executive director. 

“We have known the Côte team for a number of years and we are delighted to be making this investment,” Ian Moore, a partner at CBPE, said in a statement. The management team has an “uncompromising dedication to quality and a proven track record of growing successful restaurant businesses”. CBPE will be working with the team to “facilitate Côte’s measured growth plans over the coming years”, he added. 

CBPE: investing
in Côte 

CBPE, which typically invests in companies with an enterprise value up to £150 million, has invested in the leisure sector before. Previous deals include Park Resorts, a UK caravan operator, and ten pin bowling business The Original Bowling Company. 

CBPE has made the investment from its eighth fund, a £405 million 2009-vintage, which closed in February 2010. The fund is the firm’s first since spinning out from UK investment bank Close Brothers in December 2009.
Côte is CBPE’s second investment this year. In May, the firm acquired Medica Reporting, a UK-based provider of high quality tele-radiology reporting services. 

In February, CBPE sold Rosemont Pharmaceuticals to US-listed pharma giant Perrigo for about £183 million, generating a 3.25x return.