The Business Growth Fund, the fund set up by five major UK-based banking groups, has backed Barburrito, a Mexican street food chain, marking its fifth deal in three months.
The Business Growth Fund (BGF) invested £3.25m ($5.2m) in Barburrito on April 3. This took the total investments by the fund to £37m so far and was the BGF’s fifth deal in three months.
Barburrito was founded in 2005 and employees more than 100 people. Its revenues in its latest financial year revenues were £4m and its like for like sales were up 20%.
Colin Hughes, previously on the boards of UK-based fast food chains Pret a Manger and EAT, will join Barburrito’s board.
Andy Gregory, BGF’s regional director for the North of England, said: "Barburrito has a fantastic product, a strong vibrant brand, ambitious management and an excellent operational platform. These are strong foundations for growth and the basis for our decision to invest. Having established the UK’s first ever burrito bar, Morgan and Paul have successfully pioneered fresh Mexican food in the UK and it is fast becoming one of the most popular parts of the food and drink market. The business has demonstrated strong trading in the North West and is now well placed to bring its winning formula to the London market. This is where our capital and expertise comes in and we look forward to working with the team as we move into their next stage of growth."
Gregory added: "This is the first investment led by our Manchester office and as such represents a significant landmark for BGF. We are seeing a strong pipeline of investment opportunities across the North of England, a clear indication that businesses here are recognising the value that a supportive equity investor can bring to the table."
Below are summarised the other BGF deals this year:
On March 20 BGF backed Stats, a Scotland-based oilfield service sector business, investing £7.8m, in the company founded in 1998. Stats employs 130 people and had 2011 revenues of £14m which are projected to grow by more than 75% in 2012 to about £25m.
On March 14 BGF invested £4.8m in Wow! Stuff, a UK-based toy development company, which had revenue of nearly £20m.
On February 9 BGF backed GCI Telecom Group, investing £10 million. GCI has a turnover of nearly £50m and employs 220 staff across 9 UK locations. It was formed in 2000.
On January 4 BGF invested in social video advertising platform Unruly taking part in its $25m series A financing alongside venture capital firms Amadeus Capital Partners and Van den Ende & Deitmers.