LONDON, UK – Causeway Capital, an Irish-based equity fund, has bought out the Patisserie Valerie coffee-and-cake chain from British administrators, in a deal that will save nearly 2,000 jobs.
The management team at the coffee and cake chain has secured backing from investment firm Causeway Capital to take over 96 shops.
Sister brand Philpotts has also been sold in a separate deal, saving a further 21 stores.
The two brands were sold for a total of £13 million ($16.6 million), consisting of £10 million in cash and a deferred consideration of £3 million, according to a London Stock Exchange filing.
Patisserie Valerie ‘s parent company, Patisserie Holdings, collapsed in January following an accounting scandal.
Patisserie Valerie’s chief executive, Steve Francis, who is leading the management team buy-out, said the move would end “a disruptive period of uncertainty for the business” and provide the foundation for “an exciting future”.
Causeway Capital is best known for its investment in Celtic Linen but this latest purchase following a previous investment in the 60 outlets of Bakers+Baristas is a vote of confidence in the crowded UK coffee business.
