Guzman y Gomez secures $135 million in financing round
Mexican restaurant chain Guzman y Gomez has secured four major investment funds to back a $135 million financing round.
The backing gives the chain a of $1.73 billion, up around $200 million in two years.
While an Initial Public Offering (IPO) is on hold, the company continues to add investors to its share register. The latest additions are Cooper Investors, Hyperion Asset Management, Firetrail Investments and QVG Capital.
Funds were also raised from its existing investors, which include Aware Super and TDM Growth Partners.
The company hasn’t ruled out an IPO and will determine whether to go ahead in the next 12 months.
It’s not all smooth sailing for Guzman y Gomez, which recently reported a net loss of to $3.9 million in the first half of this financial year from $1.1 million in the prior corresponding period.
The loss includes a $2 million payment to former executives who had accused the owners of racism and incompetence in its US expansion plans.
The latest round of funding will help with the company’s Australian and international expansion funds.
“The proceeds of the raise will support (Guzman y Gomez’s) three-year growth strategy, including the Australian and overseas expansion plans,” the company said on Tuesday.
Global sales are $471 million, up more than 30 per cent on the same period a year ago. The company opened 13 restaurants in Australia in the half, and closed one, taking the network to 183 local stores across franchised and corporate owned sites.
Cooper Investors portfolio managers Justin O’Brien and Geoff Di Felice are confident of the company’s long term outlook.
“We did extensive analysis of Guzman y Gomez’s business, including sending our [quick service restaurant] expert to meet the team in Chicago. Throughout this process, the quality of founder Steven Marks and his team has shone through,” O’Brien said.
Jonathan Jackson, 10th April 2024
