Private equity firm backs Alchemist MBO

Under the terms of the deal, Palatine is injecting £12m of equity into the business, while Santander is providing £6.5m of capex to fund its further expansion, with three more sites, including two in central London, understood to have been lined up to open in the coming 12 months.

The brand’s management team will be led by Living Ventures managing director Paul Moran, with Simon Potts, who has been with the Tim Bacon and Jeremy Roberts-founded business for c10 years, becoming designate managing director.

It is envisaged that Potts will take over the reins from Moran within the next 12 months. Bacon becomes non-executive chairman of The Alchemist, which currently operates two sites in Manchester, one in the Trinity scheme in Leeds and at Bevis Marks in London.

PMA sister title, M&C Report,​ understands that under the terms of the deal, Palatine now owns 60% of the new business, with Bacon and Roberts controlling 30% and management 10%.

It is the second buyout involving a Living Ventures brand that Palatine has backed within just over a year. Last April, it provided £10m of equity to fund the buyout of the group’s Italian restaurant chain Gusto.

Bacon told M&C Report:​ “We are very excited to have done a second deal with Palatine. The Alchemist is already a highly successful brand in its existing locations and we are very much looking forward to expanding it across the country. Tally ho.”