Tue 18th Apr 2023 - Exclusive: Mitchells & Butlers to acquire remaining stake in Ego Restaurants Exclusive – Mitchells & Butlers to acquire remaining stake in Ego Restaurants, ‘firepower to accelerate expansion’: Mitchells & Butlers (M&B), the All Bar One, Harvester and Miller & Carter operator, is to acquire the remaining 60% stake in the James Horler-led Ego Restaurants, with the deal expected to complete in June, Propel has learned. M&B entered a joint venture with Ego’s parent company, 3Sixty Restaurants, in August 2018, taking a 40% stake in the company at that time, for an initial cash consideration of circa £4m. It acquired the minority stake from serial sector investor Luke Johnson. M&B did not disclose how much it is paying to acquire the remaining 60% stake. However, Propel understands that in a presentation to analysts after M&B’s full-year update last December, the company said it had set aside £10m to £20m to acquire the remaining stake in a joint venture it was currently part of. Under its joint venture with Ego, the Mediterranean-themed business has doubled in size from 13 to 26 sites, and its Ego Club loyalty scheme has grown to have 566,000 members. It is understood Horler and his management team will continue to lead the business through its next phase of growth within M&B. Propel understands both parties believe a rapid expansion of Ego will be more achievable under direct M&B ownership, with an initial target understood to be having 50 sites operated under the concept within the next three years. Chris Hopkins, commercial director at M&B, told Propel: “A lot will depend obviously on the results under our ownership, but from what we've seen and from the guest feedback, which the Ego sites are enjoying, there's a tremendous pull from guests for it. The concept ticks an awful lot of customer boxes. We won't be acquiring it simply to sit still. The intention is to expand at an appropriate pace, a pace which the business, James and his team can accommodate, to take advantage of what we're seeing as lots of opportunity within our estate for conversion.” M&B chief executive Phil Urban added: “James and his team have built a strong business, with a strong culture, delivering impressive results. Bringing it under M&B ownership will give James the firepower to accelerate expansion, and Ego will be a great addition to our portfolio of market-leading brands.” Horler said “I am delighted that M&B will soon add Ego as a brand to its portfolio. The joint venture has been very successful and demonstrates what can be achieved with focused management, great people, real customer engagement and terrific sites. I am excited at the opportunity to open Ego in many more locations across the UK.” 3Sixty Restaurants features in the Propel Turnover & Profits Blue Book, the latest version of which was released on Friday (14 April). Its turnover for the year ending 28 March 2022 of £38,753,089 is the 165th highest in the database. Its pre-tax profit of £4,971,434 is the 121st highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.