Risk Capital Partners purchases Druckers Vienna Patisserie, combining it with their London-based Patisserie Valerie to dominate high-growth sector
Luke Johnson’s private equity fund, Risk Capital Partners (RCP), today announced the acquisition of Druckers Vienna Patisseries – a Birmingham-based chain of retail patisseries.
Druckers was founded in 1965 and offers a full range of Viennoisserie, cakes and savoury items, all hand-made by the company.
Druckers will operate alongside Patisserie Valerie – the iconic London-based chain of luxury patisseries – which RCP bought in September 2006. Each will retain its own name and identity although will be consolidated into one company.
“The two businesses are highly complementary,” says Luke Johnson, Chairman of both. “Druckers is Midlands based with many of its branches in shopping centres nationwide. Meanwhile, Patisserie Valerie is London focussed and operates mainly in traditional high street and central locations. Both offer authentic pastries and light meals, breakfasts, elevenses, lunches, teas and early suppers. They share the same ethos of excellent high quality and traditional European patisserie.”
The combined business will have over 50 branches, with pro forma revenue of £25 million and EBITDA of over £3 million.
“We have been negotiating to buy Druckers for many months and are delighted to have secured the prize,” says Johnson. “The two operations fit very well together and make us easily the market leader in this fast-expanding sector. We plan to bring genuine patisseries to many more places across Britain under both brands in the years to come. We are very enthusiastic about the potential.”
This summer Patisserie Valerie plans to open new branches at three Central London sites – Queensway, Marble Arch and Covent Garden – “each providing more of the best espresso and croissants this side of Paris,” says Johnson.
This is RCP’s third transaction in 2007. Earlier this year RCP invested in APT Controls, the market leader in car parking equipment; and recently RCP invested in Public Recruitment Group PLC, a market leader in staffing for the educational and social work sectors.