Pho sells majority stake in enterprise to TriSpan
The restaurant fund Rising Stars, owned by TriSpan, has acquired a majority stake in the London street food chain Pho. AlixPartners advised the Vietnamese grocery chain on the transaction and helped secure investments.
Stephen and Juliette Wall opened ‘Pho’ in June 2005 after traveling to Vietnam and falling in love with the food. The restaurant takes its name from the famous Vietnamese soup dish, which consists of broth, rice noodles, herbs and meat, sometimes chicken. 15 years after opening the first Pho restaurant in Clerkenwell, it is still a family run business serving Vietnamese street food that is made fresh daily without the use of a central kitchen.
The Pho brand has developed rapidly in recent years. Originally supported by investments from Tom and Ed Martin, it was further supported by Gresham House Ventures, which invested £ 4.4 million in 2012 to fund new restaurant locations. Pho now operates 30 restaurants across the UK and three delivery-only locations making it the UK’s leading Vietnamese casual group.
As Pho tries to build on this dynamic, it has secured a new financier in the restaurant fund Rising Stars. The TriSpan-owned fund acquired Gresham House’s 30% stake as part of its majority stake in the company. The transaction will help the restaurant group open a branch in Lincoln in late summer 2021. Pho is also said to be actively exploring other expansion opportunities as the UK emerges from its year-long lockdown.
The founders and management will continue to have a significant interest in the company. Stephen and Juliette Wall, Pho’s founders, will remain in senior positions to support the growth plan, while Patrick Marrinan, former Pho Chief Financial Officer, will lead the group as Managing Director in the next phase of growth. Robin Rowland, TriSpan European Operating Partner, will now chair the board, while Steve Hill, current chairman, will remain as non-executive director.
The deal was supported by experts from the consulting firm AlixPartners. The AlixPartners M&A team was led by partner Paul Hemming and director Craig Rachel. They helped Pho secure TriSpan’s investment while advising Pho on the transaction process. The commitment continues a longstanding partnership between the companies, with AlixPartners previously advising Pho on the acquisition of investments from Gresham House in 2012.
