Athletic Ventures will also become a new investor.
Guzman y Gomez (GYG) announced that Magellan Financial Group will acquire 10% of the Mexican chain from existing shareholders for $86.8 million.
The move, which comes before an expected initial public offering, resulted in an equity valuation for GYG of $867 million.
TDM Growth Partners and GYG founder and CEO Steven Marks will remain the chain's largest shareholders.
“Magellan’s experience and track record in the QSR space is proven here in Australia and globally. We could not think of a better qualified partner to have alongside us as we enter the next, most exciting phase of the GYG journey,” Marks said in a media release last December.
The transaction is expected to complete in late January 2021, subject to shareholder approval, following which Craig Wright, Magellan’s head of governance & advisory, will join the GYG board.
“GYG is a world class business with enormous growth potential and represents a highly attractive investment opportunity for our Principal Investments business,” Magellan chairman Hamish Douglass added.
Magellan’s core operating subsidiary, Magellan Asset Management Limited, has approximately $103 billion of funds under management, including over $7 billion of investments in some of the world’s largest QSR businesses.
Guzman y Gomez also announced that Athletic Ventures (AV) is to become a new investor. AV represents a group of male and female athletes founded by GWS Giant, Matt de Boer.
Over 40 current athletes will become GYG shareholders through AV on the same commercial terms as Magellan.
“[T]he high-performance culture that Steven and his team have built makes GYG a natural fit for AV. We are so pleased to be investing in such an aligned business that we can genuinely support and add value to,” de Boer said.
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