TDR Capital takes majority stake in Buffalo Grill

UK-based private equity firm TDR Capital entered into exclusive negotiations to acquire Buffalo Grill in a tertiary leveraged buyout from a consortium of financial sponsors, including majority shareholder Abénex Capital, NiXEN Partners, and Céréa Partenaire. TDR Capital secured the deal pre-emptively by submitting a swift, firm, all-cash offer within a two-week timeframe, which allowed it to bypass a formal auction process being prepared by advisor DC Advisory. This decisive bid outmaneuvered other interested parties, including Mexican strategic buyer Alsea. TDR Capital's rationale for the acquisition is to accelerate Buffalo Grill's growth. The strategy involves further expanding the restaurant footprint, with management identifying a potential for at least 60 additional locations. TDR also plans to enhance the company's digital capabilities to optimize pricing and improve margins. Furthermore, the acquisition positions Buffalo Grill as a platform for potential consolidation within the French restaurant sector, with the new ownership structure enabling it to pursue strategic bolt-on acquisitions. The transaction was subject to customary conditions, including consultation with employee representatives and approval from the French competition authority.

In the past, Buffalo Grill was acquired by Colony Capital in 2005 as part of its expansion strategy.