Carlson Acquires Rest of British TGI Friday’s

Carlson, the hotel, restaurant and travel company, has bought the rest of the shares in TGI Friday’s that it didn’t already own. The group already operates TGI around the world and has purchased the 60% stake in the UK arm from AAC Capital Partners, the private equity group, in a deal valued at £60 million.

TGI Friday’s is now set to get an expansion in the UK. Carlson says that they are investing £63.9 million (US$100 million) into the British business. They are financing the stake purchase and planning to add 16 more restaurants to the 46 in the network by 2015. The firm is also planning to expand their global TGI businesses, aiming to add at least 160 restaurants overall around the world.

Carlson Restaurants president and chief executive Nick Shepherd says that they are focusing on high profile, high traffic areas. So far, they have already started plans to open new locations in Sheffield and London by October, he continued. This expansion may offer another 1,500 to 2,000 jobs in the country over the next 5 years, he added.

TGI Friday’s was originally established in America in 1965, and the first UK restaurant was opened in Birmingham in 1986 by Whitbread. Since Carlson and AAC Capital Partners bought the UK business in 2007, they have spent over £11 million to open new outlets and refurbish existing ones. Earnings have more than doubled during this time, while like-for-like sales have grown over 5%.

Shepherd said that they are very happy with the performance of the UK business, and believe in the brand’s strength. They are enthusiastic about their initiative to grow in the UK and other key markets worldwide, he added.