3i Finds Appetite For £200m Naked Chef Bid

One of the UK's oldest private equity houses is weighing a bid for a stake in the fast-expanding restaurant empire of Jamie Oliver, the celebrity chef.

Sky News has learnt that 3i is among a pack of prospective investors who have been approached to gauge their interest in the business.

The process, which has been kicked off by Oliver and his executive team, is aimed at enticing a bidder to acquire a large stake in the business, which includes brands such as Jamie's Italian and Jamie Oliver's Diner.

Advisers at Royal Bank of Canada (Other OTC: RBKDF - news) are handling the discussions with 3i and other prospective buyers, with Mr Oliver said to be seeking a £200m valuation for his restaurants business.

Initial offers are due in about a week, sources said on Monday.

3i is a former shareholder in Giraffe, the chain subsequently acquired by Tesco (Xetra: 852647 - news) , while it has also been linked with a bid for Yo! Sushi.

The sale process is separate to conversations that Oliver is holding with media groups and financial investors about acquiring shares in his publishing unit.

Sky News disclosed earlier this year that Raine, a New York-based merchant bank, is working on a deal that could see up to £50m raised from the sale of a minority interest in the media arm.

The two dialogues with investor underline the commercial clout wielded by Oliver, who has been a prominent face in UK and international media for the last 15 years.

He was the face of J Sainsbury, the supermarket chain, during its Renaissance, and has campaigned for improved standards for food in British schools.

In total, his various business interests employ around 8,000 people.

In a statement earlier this year, a Jamie Oliver Group spokesman said: "Like any well run private company, we regularly review our funding policy and requirements.

"All options, including bringing on board an external investor, are considered in order to position the group to take best advantage of the clear market opportunities that lie ahead."

The restaurants unit stake sale is understood not to include Oliver's Fifteen-branded sites, the first of which opened in 2002 as a place for apprentice chefs to ply their trade.

His other retail brands include Barbecoa, a steakhouse concept.

The chef's media interests have also seen rapid expansion, although they endured a blip in 2013, according to accounts filed at Companies House.

Pre (Shanghai: 600048.SS - news) -tax profit at the parent company Jamie Oliver Holdings, which houses his publishing interests and his TV production company Fresh One Productions, fell to £6.2m from £9.8m in 2012 after exceptional items.

Turnover was 7.1% lower than the year before at £32.8m, according to the accounts.

The chef has created an online video venture called FoodTube, which now has well over one million subscribers.

Oliver is worth £180m, according to the latest Sunday Times Rich List.

3i declined to comment.