By Emma-Victoria Farr
FRANKFURT (Reuters) - Czech Republic-based private investment firm McWin said on Tuesday it had bought a majority stake in Germany's L'Osteria in a deal that values the Italian-themed restaurant chain at around 400 million euros ($434 million).
The move is aimed at driving the chain's growth across Europe, with McWin investing alongside L'Osteria founders, Klaus Rader and Friedemann Findeis, and management.
The exact size of the stake was not disclosed.
"We are big believers that excellent businesses like this one outperform in turbulent times," said Henry McGovern, founding partner at McWin, referring to a tough economic backdrop.
Founded in 1999, L'Osteria serves Italian food in 157 restaurants across eight European countries. This is the first time there has been a change in ownership since the company was founded 24 years ago.
McWin, which has offices in Britain, Poland and Spain, invests in food service and food technology, and has holdings in over 1,500 restaurants across Europe, including Gail's Bakery, Burger King Germany, and dean&david.
The investment follows an auction process and has been made via McWin Restaurant Fund (MRF), which totals 525 million euros and was launched in August 2022.
McWin's financial adviser was KPMG, while L'Osteria and its shareholders were advised by Ferber & Co and Deutsche Bank.
The transaction is subject to regulatory requirements and is expected to close this quarter.
($1 = 0.9206 euros)
(Reporting by Emma-Victoria Farr; Editing by Mark Potter)