Mon 18th Sep 2023 - Exclusive: McWin acquires majority stake in Big Mamma Group, company valued at €270m Exclusive: McWin acquires majority stake in Big Mamma Group, company valued at €270m as global expansion planned: McWin, the investment firm of food industry entrepreneurs Henry McGovern and Steven Winegar which backs the likes of Vapiano and Gail’s, has acquired a majority stake in the Big Mamma Group, the operator behind London restaurants including Gloria, Ave Mario, Circolo Popolare and Jacuzzi, Propel understands. The long-term investment made out of the McWin Restaurant Fund, which is expected to close in the third quarter of 2024, sees the company valued at €270m. Big Mamma Group currently operates 23 restaurants across France, England, Germany and Spain, and it is believed the new investment from McWin will help the business expand further in its existing territories and expand into new ones. It said it will “leverage the partnership with McWin to become a world leading brand in affordable experiential luxury, expanding from Europe today, to the Middle East and United States tomorrow”. Propel understands that the business has been working with advisory firm Rothschild’s Paris office on the process. Founded in 2015 by Tigrane Seydoux and Victor Lugger, Big Mamma Group currently operates five restaurants in London after opening Jacuzzi in Kensington in January, and Carlotta in Marylebone in May. It also operates a bricks-and-mortar site under its pizza delivery concept, Napoli Gang, in London’s Ladbroke Grove. Seydoux and Lugger will continue to run the company, which employs 2,400 staff, as co-chief executives and will remain “important shareholders of the company”. Seydoux said: “It is with great excitement that we join forces with the McWin team. We are delighted to have a partner who shares our vision of running a responsible hospitality adventure with a collective approach, uncompromising quality, and a strong passion for respecting culture, products and Italy. It’s the starting point for new dreams and challenges, in line with our desire to constantly elevate with even more exceptional and experiential restaurants.” Lugger added: “We are extremely grateful to our original backers for their guidance and support, and without whom this journey would not have been possible. This provides an opportunity for us to cement these strong foundations, whilst bringing in a new long-term partner for Tigrane and myself. We couldn’t have wished for better partners than Henry, Steve and their team. They are inspiring players who know and understand the field, the importance of detail and operational excellence, and who share our crazy dream of revolutionising the dining experience for our guests on a daily basis.” Earlier this summer, Big Mamma Group opened a third site in Germany, in Hamburg. It opened Italian trattoria Edmondo in the city’s Die Bank building, a former bank with five-metre-high ceilings that features more than 2,400 bottles of spirits hanging on the walls. The trattoria can accommodate 230 customers, including 50 on its terrace. The company, which is known as Big Squadra in Germany, also operates Giorgia Trattoria in Munich and the Coccodrillo in Berlin. The business saw turnover increase 85% last year across its then three-strong UK estate, pushing it past £25m. It reported turnover for the year to 31 December 2021 increased 80% to £13,981,667 (2020: £7,778,204), as it swung from a pre-tax loss of £1,610,035 to a pre-tax profit of £629,166. In September 2021, the business received backing from investment firms Capza and Zencap AM. McWin, which was founded by McGovern, founder of AmRest Holdings, and Winegar, shareholder and senior executive of Zena Group and founder of Restauravia Grupo Empresarial, currently advises three investment vehicles and has total assets under management of more than €1bn, with a growing portfolio made up of more than 1,300 restaurants and an ambition to become a dominant player in Europe. Last November, it made a “significant capital injection” into White Rabbit Projects, the hospitality incubator. Earlier this year, McWin acquired a majority stake in German pizza and pasta chain L’Osteria, which has two UK sites. It became L’Osteria’s majority shareholder in a deal that valued the Italian-themed restaurant chain at around €400m. McGovern, said: “I have seen a lot of change and innovation in this industry over the last three decades, and I truly believe that Tigrane and Victor are visionaries. They have pioneered a new type of restaurant experience, providing customers with a truly unique and memorable visit at every site. We are delighted to join the Big Mamma family on its next stage of growth.” Goss added: “What the team at Big Mamma has achieved in nine years is nothing short of remarkable. Successfully crossing borders in our industry is never easy and they have done it four times, soon to be five! They understand what the customer wants, and they have been bold in their delivery. It is an incredible story, and we are honoured to be a part of it.” Big Mamma Holdings features in the Propel Turnover & Profits Blue Book. Its UK revenue of £13,981,667 for the year ending 31 December 2021 is the 429th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. 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