ECI Partners and Tragus Holdings

Tragus is one of the UK's leading mid-market restaurant businesses, operating all day dining restaurants, predominantly under the Caf‚ Rouge and Bella Italia brands, in addition to a number of complementary brasseries. It was acquired from Whitbread PLC in May 2002 by a management team that saw the opportunity to turn the operational and financial performance of the business around, based upon the strength of its position in the market and a return to focusing on the basics.

Tragus now owns and operates 157 restaurants, operating as four divisions: Caf‚ Rouge (80), Bella Italia (formerly Bella Pasta) (63), Mamma Amalfi (9) and Brasseries (5), including Oriel, Abbaye and Leadenhall Wine Bar. Based in London, the company employs approximately 3,600 people.

ECI backed a £25m MBI of Tragus in 2002, working with management thereafter to transform the business, trebling EBITDA from £4.2m in 2002 to £13m in 2004. The business is expected to generate revenues of around £114m in the year to May 2005 and EBITDA of £16.8m. The cash proceeds that ECI will receive represent a return of 5.3x its original investment and a 94% IRR.

Canaccord Genuity was appointed by ECI to advise on strategic options for the business and was sole advisor to the shareholders on the transaction.