Whitbread sells TGI Friday's for £70.4m

Whitbread has sold its interest in the TGI Friday's restaurant chain to ABN AMRO Capital and US group Carlson Restaurants Worldwide for £70.4m.

The deal covers 45 outlets and is part of a corporate realignment by Whitbread, which also owns David Lloyd fitness centres and around 300 pub restaurants. It follows the sale of more than 200 pubs to Mitchells & Butlers last summer.

"This is not a reflection on the TGI Friday's brand," a Whitbread spokeswoman said.

"TGI was a franchised operation and Whitbread wants to focus on businesses that it owns," she added.

Proceeds from the £70.4m - which was in line with analyst's expectations - will be used to pay down the group's debt.

An announcement regarding Whitbread's capital structure, which may include share buybacks, will be made later in the year.

Carlson Restaurants Worldwide is the master franchisor of the TGI Friday's brand and the deal means the UK becomes the largest market outside the US in which the group has ownership interests.

It will have a 40 per cent interest in the UK TGI operation, with ABN AMRO owning 60 per cent.