Electra has invested £100 million of equity in the deal alongside TGI Friday’s management team. Debt facilities for the transaction were provided by ICG and Barclays.
It is thought the new investment will help the 66-strong brand expand to 100 sites over the next five year, with expansion the main focus over bolt-on opportunities.
Bill Priestley, Partner at Electra Partners, said: “TGI Friday’s is exactly what we look for in an investment - an attractive, differentiated business with an impressive financial track record and an excellent management team. We look forward to working with Karen Forrester and her team to develop the business further through a mixture of organic growth and new restaurant openings, while at the same time continuing to improve the existing sites.”
Forrester said: “In Electra Partners we are delighted to have found a long-term partner capable of supporting our growth ambitions, as we look to further expand TGI Fridays share of the UK market.
“TGI Fridays best-in-class service, unique bars and exciting dining environments create a unique guest experience with a wide demographic appeal. The enthusiasm of our team members is the key to this and they will remain at the centre of our offering.”
Electra is understood to have beaten Barracuda Pub Company-backer Charterhouse Capital Partners in the bidding for the business.
Sentinel Capital and TriArtisan Partners, which acquired the global TGI Friday’s business in May for c$800m (£470m), appointed Rothschild to oversee the sale of its UK estate earlier this summer.
The business, which reported EBITDA of £19.9m in 2013, saw turnover increase to £166.8m in the 53 weeks to 30 December 2013, from £147.7m the year before. Like-for-like sales climbed 3.6%.
Earlier this year, the company launched a new “Fast Track” format at Manchester Piccadilly station, its first site at a transport hub.
Part of its aim to reach 120 UK locations by 2020, the company said the new format combined the “fresh and flavourful food for which Friday’s is famous within a restaurant environment tailored to the needs of the busy traveller”, with meals to be served within 10 minutes of order.
Of this 120-site target, the company believes there is opportunity to operate c80 sites under its core format.