Restaurant Group takes stake in Living Ventures

The Restaurant Group has tied up its deal with Living Ventures, initially acquiring a 40 per cent stake in the upmarket bar business.

In a complex swap of assets, Restaurant Group is paying £7.7m up front for a 40 per cent stake in Living Ventures, and another £2.2m for further shares, redeemable in three years' time.

At the same time, Living Ventures is paying £16.4m for Restaurant Group's 19-strong Italian eaterie chain Est Est Est. This includes £6m payable in three months, with the balance due in three years.

The Restaurant Group will have the option to buy the remaining 60 per cent of Living Ventures in 2008. If this is not exercised, there is a separate option to buy back Est Est Est.

Tim Bacon (pictured​), chief executive of Living Ventures said: "The addition of Est Est Est is a transformational deal for Living Ventures providing great opportunity for the company to expand its product range and become even more food-led.

"We believe that we can redefine Est Est Est as an aspirational, high quality brand. We will be focussed on delivering performance and on expanding an already successful business."

Mr Bacon is a serial licensed trade entrepreneur who set up Living Ventures in 1999 by Tim Bacon with partner Jeremy Roberts. The company currently operates 15 units, trading as The Living Room, Prohibition and Bar & Grill. Andrew Page, group managing director of the Restaurant Group, said: "This is a great fit for both companies. Living Room is one of the most successful new restaurant and bar concepts of recent years.

"It has a unique atmosphere created by the mix of its customers, design and ambience. We believe that its customer base is complementary to that of Est Est Est."

Restaurant Group's other brands include Frankie & Benny's, Chiquito, Caffe Uno and Garfunkel's.