Lion Capital acquires stake in Gordon Ramsay's restaurant empire
Lion Capital has acquired a 50% stake in the North American restaurant business of British chef Gordon Ramsay. The deal is worth $25 million, with Lion also agreeing to invest $100 million over the next five years to help Ramsey open 100 new U.S. spots over the next five years.
Why it matters: It reflects how private equity keeps plowing money into restaurants, including earlier this week, even though they are a notoriously difficult business. Just last month, Ramsay rival Jamie Oliver said he'd close all but three of his 25 locations in the U.K.
The bottom line: "Ramsay already has eight restaurants across Las Vegas, Atlantic City and Baltimore, in partnership with Caesars Entertainment. There’s five concepts in Las Vegas, of which three are brands that will be expanded through the new deal. " — Chloe Sorvino, Forbes.