Private equity firm Bridgepoint is reportedly considering selling its minority stake in Japanese restaurant and grocery brand Itsu, according to Sky News.
The outlet said the London-listed investment firm is working with Goldman Sachs on a potential sale process that could begin within the next few months.
Bridgepoint acquired its minority interest in Itsu in 2021, in a deal that valued the business at approximately £100m.
The potential exit comes as Itsu reports record revenues and plans further international expansion, with founder Julian Metcalfe targeting annual sales of more than £500m.
Itsu group recorded revenues of £201m in its latest accounts, up 14.1% on the previous year. The company also returned to profit, reporting pre-tax profits of nearly £4m, compared with a £6.9m loss in the previous year.
The group’s grocery arm was a key driver of growth, with sales increasing by 33% following new product development. The business has also expanded its presence into markets including Ireland, Germany, The Netherlands and Spain.
Itsu’s restaurants division recorded more limited growth, with revenue rising 2.8%, amid continued pressure on consumer spending and high street footfall. The company has subsequently focused its restaurant expansion on locations with high concentrations of workers in major urban cities.
Metcalfe is seeking a new investor capable of supporting Itsu’s international growth as Bridgepoint looks to sell its holding, Sky News reported. Bridgepoint’s investment in Itsu reunited the firm with Metcalfe, following their previous partnership with sandwich chain Pret A Manger, when it invested in the company in 2008 before selling its stake a decade later.
The potential Itsu sale follows the company’s restructuring during the Covid pandemic. Itsu secured creditor approval for a company voluntary arrangement in 2020, subsequently closing two of its 77 UK restaurants and agreeing rent reductions at the majority of its remaining sites.
Despite the restructuring, the business has since returned to growth, with its grocery option becoming an increasingly important part of the group. Bridgepoint and Metcalfe are now understood to be seeking a valuation substantially higher than the original £100m.
Bridgepoint declined to comment.
