Former Conran Restaurant Empire Heads For IPO

The restaurant group founded by Sir Terence Conran is being groomed for a public listing that will enable investors to buy shares in the owner of Le Pont de la Tour, Orrery and Quaglino's.

Sky News has learnt that LDC, the private equity group which bought a controlling stake in D&D Restaurants in 2013, is lining up Zeus Capital, the investment bank, to oversee a bumper flotation.

The timing and valuation of the float have yet to be finalised, sources said on Wednesday.

D&D owns many of London's most prominent restaurants, including Bluebird, Coq d'Argent and Skylon on the South Bank.

The company's name refers to the initials of Des Gunewardena, the chief executive, and David Loewi, managing director, who led the buyout of Conran Restaurants in 2006

Founded in 1991, D&D's original buyout took place in 2006.

In 2013, LDC, the private equity firm owned by Lloyds Banking Group, bought stakes previously held by Conran Holdings and private equity investors Caird Capital.

The company has expanded internationally, opening Alcazar in Paris in 1998, followed by the launch of Guastavino’s in New York, Custom House in Copenhagen, and Botanica and Iconic, both in Tokyo in partnership with Hiramatsu, a Japanese company.

D&D London today owns and operates 34 restaurants with annual revenues of roughly £75m, according to the company's website.

If the flotation does happen, it will be the latest corporate event involving major UK restaurant operators as they seek to cash in on the rapid recovery in consumer spending.

Last month, Cote, the French bistro chain, was taken over by BC Partners, a buyout firm, at a valuation which surprised many City observers.

BC is understood to believe that there is scope to triple the number of Cote outlets in the UK, despite the growth of rival operators, underlining growing confidence in the sector.

‎Among the other chains that have changed hands or launched sale processes in the last few months are Ask, La Tasca, Las Iguanas, Prezzo and TGI Friday's.

LDC, Lloyds and Zeus all declined to comment.