Bridgepoint set to take major stake in Itsu

18-Jun-2021 - Last updated on 18-Jun-2021 at 14:02 GMT

Bridgepoint, the backer of Deliveroo, Burger King and the Azzurri Group, is set to take a major stake in Itsu in a deal that would value the business at £100m

Sky News reports that Bridgepoint is putting the finishing touches to a deal, with an announcement possible as soon as Monday (21 June).

The deal will see the private equity firm reunited with the founder of Itsu and Pret A Manger co-founder Julian Metcalfe.

Bridgepoint was a former backer of Pret before it sold its stake to JAB Holdings in 2018.

Sources have said the renewed partnership has come about in part because of the strong growth potential of Itsu's grocery business, which has seen it begin distributing branded products in chains such as Waitrose.

Earlier this month, Itsu chief executive Ganan Kanagathurai told MCA, BigHospitality's sister site, that the group has the potential to add a further 150 sites to its UK estate.

Itsu will open its first UK franchise units in Leicester and Reading, and its first shop in Europe within Brussels Airport – the latter in partnership with HMS Host, with more to 'hopefully' come next year.

Kanagathruai said that while Itsu had been focusing more of its time on opening stores outside London over the past three or four years, this thinking had been accelerated during the pandemic.

The expansion, allied with the growth of the grocery business, could create 2,000 new jobs, according to insiders.