Gail's investor McWin to acquire majority stake in L’Osteria

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McWin, the private equity backer of high street bakery chain Gail's, is to acquire a majority stake in German restaurant brand L’Osteria with a view to driving further European growth.

The deal will see McWin investing alongside L’Osteria’s founders, Klaus Rader and Friedemann Findeis, and management, led by CEO Mirko Silz, to support the Italian casual dining chain’s growth in the DACH region as well as multiple new and existing European markets.

“The L'Osteria founders, my leadership team and I couldn't wish for a better and more matching majority shareholder,” says Silz.

“We are very happy that after 24 years of successful corporate history, we are now opening a new L'Osteria chapter with McWin, which has growth and internationalisation in its title and fits 100% to our core strategy.”

The deal follows the news back in November that McWin had invested in UK-based specialist hospitality incubator White Rabbit Projects, whose portfolio includes Island Poke, Kricket and Lina Stores.

L’Osteria made its UK debut in 2016 and currently has two sites in England – in Bristol and Southampton.

It opened its first site in Nuremberg in 1999, and operates more than 150 restaurants in total across eight European countries including Austria, Switzerland, France and Luxembourg.

The transaction values the business at nearly €400m and McWin says the deal underpins its conviction in the European casual dining sector despite the near-term headwinds.

“In 30 years of following the European foodservice market I have rarely come across a proprietary brand with this level of quality and opportunity,” says Henry McGovern, founding partner at McWin.

“We are big believers that excellent businesses like this one outperform in turbulent times. Italian cuisine is universally popular, and L’Osteria is the clear market leader in the largest economy in Europe, with a strong track record across a wide range of operating environments.

“We fundamentally believe that L’Osteria has the potential to become the market-leading casual dining group in Europe and look forward to working with the team to deliver on that opportunity.”

The investment brings the number of restaurants in the portfolio of McWin and its affiliates to over 1,500 across Europe.