CMS acts on sale of Wahaca to Risk Capital
CMS has advised Wahaca and its management team on an agreement to sell Wahaca, a leading Mexican-inspired restaurant group, to Risk Capital, the investment vehicle of entrepreneur and restauranteur Luke Johnson, in a deal that will fund the next stage of Wahaca’s expansion.
Founded in 2007 by Mark Selby and MasterChef winner Thomasina Miers, Wahaca began with a single restaurant in Covent Garden and now has 14 restaurants across the UK. For its next phase of growth, Wahaca is looking to expand into new locations including Cambridge, Manchester, Glasgow and Birmingham, as well as looking to increase its presence in the capital.
Wahaca has previously been supported by Yellowwoods, a private investment group with a portfolio of investments primarily in the financial services, restaurant and hospitality sectors. The sale follows Wahaca's announcement earlier this year that it was seeking a new strategic partner to help reignite its growth plans, having worked with advisory firm BDO to find the right fit.
Mark Selby, Chairman and Co-Founder of Wahaca, said: “CMS have worked for the group for many years, servicing us through various financing and Covid-related issues. When it came time to finally sell the business, it was great to have David and Nick step up to represent the shareholders and the company. Their experience is unparalleled in the sector and it was a great comfort to have them on our side.”
David Roberts, CMS Partner and Head of Leisure at CMS UK, said: “Wahaca is a great British restaurant group with a strong internal culture and real identity, and I can see why Luke is keen to start working with Gemma and her team to kick start its next phase growth journey. It was a real pleasure for Nick and me to work with the team. We acknowledge the huge amount of work that Mark has done over the years, and we are excited for Gemma Glasson, Lizzie Haynes and Claire Peacock.”
The CMS team was led by David Roberts and Nick Crosbie and included Carys Holland (Corporate); Rebecca Stewart and Alex Oldland (Tax); Charles Kerrigan, Rob Ward and Alex Lee (Finance).
With over 300 experts in over 40 countries, CMS’s international Hospitality, Travel & Leisure team advises on M&A, financing, development & construction, leases, management and franchise agreements and tax structuring. In addition to advising investors and lenders, the firm also advises operators, brand owners, administrators, construction companies and technology providers.
