Exclusive – McWin and TriSpan acquire Flat Iron: McWin Capital Partners, the backer of Gail’s, Big Mamma and Sticks’n’ Sushi, and TriSpan, the backer of Pho, Mowgli and Rosa’s Thai, have partnered to make a co-control majority investment in Flat Iron, the affordable steak concept, Propel has learned. Propel revealed in May that McWin and TriSpan were in advanced talks to invest in Flat Iron. It is understood that the deal, which is set to complete later this year, is set to value the 18-strong business at circa £70m. Flat Iron was founded by Charlie Carroll in 2012 as a pop-up above the Owl & Pussycat pub in Shoreditch, east London, and opened its first restaurant later that year in Beak Street, in London’s Soho. It has grown to 18 restaurants across London, Manchester, Leeds and Cambridge, with further openings lined up in Brighton and Bristol. Chief executive Tom Byng will continue to lead the group through its next stage of growth. Byng, who previously founded Byron, joined Flat Iron as non-executive director in 2017 and became chief executive four years later. Piper made a £10m significant minority investment in the then four-strong Flat Iron in 2017. It is exiting the business as part of the transaction. McWin and TriSpan said they are “proud to partner with the Flat Iron team” and support the company’s growth ambitions and continued focus on “delivering memorable dining experiences, ensuring the business retains and deepens its identity and operational excellence as it grows”. They said: “Under the stewardship of McWin and TriSpan, Flat Iron will continue to expand its footprint in the UK and make its first steps into international markets.” Propel revealed last October that Flat Iron had appointed Houlihan Lokey to assess its options, which are understood to include third-party investment or a possible sale of the business. Byng said: “Our success at Flat Iron is a team effort, from the pot wash to the board room, and we are pleased to welcome McWin and TriSpan to the Flat Iron family. Their deep experience and knowledge of the sector are second to none, and will be invaluable as we continue our mission to serve ‘remarkable steak’ to more locations in London, across the UK and abroad.” The acquisition marks the first investment from McWin’s newly launched Foodservice Fund – a fund dedicated to lower to mid-cap European foodservice companies which have the team, the concept and the opportunity to scale. McWin said the Foodservice Fund is a continuation of the lower to mid-market food service investment strategy executed in its predecessor, the McWin Food Ecosystem Fund. Harry Goss, partner and head of foodservice at McWin, said: “The leadership, the truly compelling customer proposition and the opportunity to expand the growth story are exactly what we are looking for in this dynamic sector. We believe that Flat Iron has the right to become a multi-national British champion. We are delighted to partner with our friends at TriSpan on this opportunity as the first investment from the new McWin Foodservice Fund.” TriSpan’s Rising Stars Programme focuses on investing in and scaling restaurant and hospitality businesses with emerging brands that are poised for significant growth. Robin Rowland OBE, operating partner at TriSpan said: “Having invested in ten growth restaurant businesses in the US and Europe over the past eight years, we are very excited to partner and back Flat Iron’s outstanding team. The UK dining out market is a vibrant growing sector of £110bn-plus turnover that continues to innovate, and Flat Iron is a clear winning brand, offering outstanding value that truly delivers to wide group of guests throughout the week.” Flat Iron features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 1,108 companies. Flat Iron’s turnover of £49,631,196 for the year ending 25 August 2024 is the 243rd highest in the database. 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 kai.kirkman@propelinfo.com to upgrade your subscription.