The telecoms billionaire Sir Charles Dunstone is seeking new investors to take a big stake in Five Guys Europe, the casual dining brand he launched in Britain more than a decade ago.
Sky News has learnt that Sir Charles’s investment vehicle, Freston Ventures, has retained investment bankers at Goldman Sachs to identify a buyer for a chunk of the burger chain, which employs about 6,000 people in the UK.
This weekend, City sources said a stake of up to 50% in Five Guys Europe was likely to be made available to bidders, although all options are expected to be considered.
Teaser documents have been circulated by Goldman Sachs to potential bidders in recent weeks, with large buyout firms said to be among those interested.
One insider said that based on its projected earnings, the entirety of Five Guys Europe could be worth in the region of £600m.
The investment process has been facilitated by a deal that Sir Charles is understood to have reached to acquire the 50% stake in Five Guys Europe owned by the Murrell family, which established the business in Arlington, Virginia, in 1986.
Under that deal, Five Guys Europe will pay a royalty fee to the US brand-owner for its future use.
Sir Charles brought the business to Britain in 2013, after striking a deal with the Murrell family following a family holiday in New York.
Its first UK site opened in Covent Garden, central London, before hitting 100 outlets six years later.
The chain now trades from close to 300 stores in the European territories in which it operates, which include France, Germany and Spain.
In the UK, it has 177 outlets, while including the US business it boasts more than 2,000 stores across 26 countries.
Five Guys Europe employs about 9,000 people across the Continent, and has plans to expand into countries including Italy and Portugal.
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