M&A | UK

Tortilla completes acquisition of Chilango

Tortilla restaurant in the Kings Boulevard and Pancras Square behind London's Kings Cross Rail station. The acquisition of rival Chilango further bolsters Tortilla’s presence in central London,
IMAGO / ZUMA Wire
Tortilla restaurant in the Kings Boulevard and Pancras Square behind London's Kings Cross Rail station. The acquisition of rival Chilango further bolsters Tortilla’s presence in central London,

Tortilla, the largest fast-casual Mexican restaurant group in the UK, has announced the acquisition of Chilango Limited for a total consideration of up to £2.75 million from investment firm RDCP Group Ltd.

Chilango operates from an estate of eight premium location UK sites, which offer both eat-in and take away options, as well as through its delivery channel supported by delivery kitchens. Tortilla said: “The Acquisition strengthens Tortilla’s position as the UK’s leading fast-casual Mexican chain and accelerates the Group’s expansion across the UK, a key pillar of its long-term growth strategy. The acquisition further bolsters Tortilla’s presence in central London, with six of the eight units positioned in Zone 1. The Group wishes to take advantage of the high-quality locations operated by Chilango and the trend of workers returning to offices.”
 
As outlined at its IPO in October 2021, the Group plans to open 45 sites over the next five years. The acquired Chilango sites are additional to the target of 45. As the company explains: “The Acquisition also adds a complementary, premium brand to the Group, enabling Tortilla to capitalise on the popularity of the Chilango brand and the widespread growing demand amongst consumers for fast-growing sector trends including healthy eating, convenience and ethnic and customisable cuisine.”
 
As a result of the two companies’ similar product propositions, the Group has identified several synergy opportunities, including but not limited to leveraging the Group’s favourable buying power and 5,500sq ft central production kitchen in Tottenham Hale.
 
According to Tortilla, the company intends to retain and continue to operate the Chilango brand at certain locations and via the delivery channel in a number of Tortilla sites.
 
Richard Morris, CEO of Tortilla, commented: “We are delighted to announce Tortilla’s acquisition of Chilango. Chilango is a highly complementary brand that, similarly to Tortilla, provides a fantastic value-formoney proposition and embraces popular and growing sector trends for healthy, customisable food from an estate of restaurants situated in premium locations in London and Manchester. This acquisition accelerates our ambitious plans to further expand the Tortilla brand and these sites are in addition to our initial target of opening 45 UK restaurants over the next five years, helping us to surpass this target. It also adds another brand to the Tortilla Group, enabling us to further strengthen our leading position in the UK’s fast-casual dining market.”
 
 
About Tortilla Mexican Grill plc
Tortilla is the largest fast-casual Mexican restaurant group in the UK specialising in the sale of freshly made Californian-inspired Mexican cuisine. The Group had 68 sites worldwide as of 31 March 2022, comprising 52 sites in the UK operated by the Group, three sites franchised to SSP Group in the UK, four sites franchised to Compass Group UK & Ireland and nine franchised sites in the Middle East.
The Group was founded in 2007 by Brandon Stephens, originally from California who, upon his arrival in London in 2003, found it difficult to satisfy his desire for quality burritos and tacos. As a result, Brandon established Tortilla with a mission of offering customers freshly prepared, customisable, and authentic Californian-inspired Mexican food.


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