TDM Growth Partners’ initial $40 million bet has delivered a massive return. But while first-day profits are nice, it’s long-term success that counts.
Already a subscriber?To the surprise of exactly no one, the float of Mexican fast-food company Guzman y Gomez turned out to be hotter than an extra-spicy burrito.
Cooper Investors, Hyperion Asset Management, Firetrail Investments and QVG Capital all bought into a $135 million pre-IPO funding round held in April, and are sitting on healthy profits with the end of the financial year looming. Aware Super, an existing shareholder, also topped up its stake in that raising.
Quite right. And with the shares now trading, that is the debate the market will be able to have on a daily basis. The OTR business included 92 quick-service restaurants from a range of brands including Subway, Krispy Kreme, Hungry Jack’s and – you guessed it – Guzman y Gomez.Buried deep in the bowels of the Guzman y Gomez prospectus – page 209, for those playing at home – is a reference to Mehico Pty Ltd.The Australian Financial Review,It didn’t take long to discover that Mehico Pty Ltd is now a wholly owned subsidiary of Viva Energy, following the completion of the OTR deal.
The OTR team appears to have struck a pretty sweet deal. For example, where most franchisees pay a tiered royalty fee of between 8 per cent and 15 per cent of net weekly sales, the South Australian master franchisee agreement has a fixed royalty rate of 4 per cent to 5 per cent.
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