Magellan takes an even bigger bite of Guzman y Gomez

Magellan takes an even bigger bite of Guzman y Gomez

Magellan Financial Group's (ASX: MFG) hunger for a slice of the Mexican fast-food market has been satisfied after the fund manager finished up with an even bigger stake in Guzman y Gomez than previously announced.

The fund manager, headed by canny billionaire investor Hamish Douglass, announced plans in December to snare 10 per cent of the fast-growing food empire from company founder Steven Marks for $86.8 million.

Magellan reveals today it has settled the acquisition, paying $95.4 million for an 11 per cent interest.

The deal values Guzman y Gomez, which has 147 restaurants in Australia, Singapore, Japan and the US, at $868 million.

Marks established Guzman y Gomez in 2006 and since then it has become one of Australia's fastest-growing quick service restaurant chains. He plans to use the proceeds of the sale to ramp up expansion of the business.

Business News Australia has sought further comment from Marks.

Sydney-based Magellan has $101 billion in funds under management. The group's global fund, with a portfolio of 25 of the world's biggest companies including Facebook and Microsoft, has returned more than 9 per cent a year since inception in 2007.

Magellan's investment in Guzman y Gomez was accompanied by a separate investment by Athletic Ventures, which comprises a group of 40 high-profile athletes.

Athletic Ventures, founded by Aussie rules footballer Matt de Boer of the GWS Giants, was offered an undisclosed shareholding on the same commercial terms as Magellan.

Magellan's investment will become part of Magellan's Principal Investments business.

The group's head of governance and advisory, Craig Wright, will be appointed as a non-executive director on the Guzman y Gomez board, although he will not have any day-to-day involvement in the business.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Unpacking equity: Finding your funding fit
Partner Content
Armed with a growing business and a great opportunity, a business owner’s next challe...
Australian Business Growth Fund
Advertisement

Related Stories

Mollymook Beach startup Gravity Drinks fizzing on $1m seed raise

Mollymook Beach startup Gravity Drinks fizzing on $1m seed raise

An Australian seltzer startup that recently started ranging in clos...

Staff cuts and sales growth lift earnings at Airtasker

Staff cuts and sales growth lift earnings at Airtasker

A decision last year from online services marketplace Airtasker (AS...

ASIC tips ‘ASX Wolf’ Tyson Scholz into bankruptcy over $500,000 in court costs

ASIC tips ‘ASX Wolf’ Tyson Scholz into bankruptcy over $500,000 in court costs

Social media ‘finfluencer’ Tyson Scholz, widely known a...

Berchtold lands on her feet as Mosaic Brands names former Iconic boss as new CEO

Berchtold lands on her feet as Mosaic Brands names former Iconic boss as new CEO

After being thwarted from taking on the top job at Best & Less ...