US-based private equity company Apollo Global Management has agreed to purchase the owner of Wagamama, The Restaurant Group (TRG), in a deal valued at £506m ($620m).

Following this transaction, TRG will be taken private.

According to a report by Reuters, the deal has been struck following a lengthy campaign by activist investors for a shake-up of the dining operator.

Apollo has been looking to acquire TRG for many years, as the private equity believed that TRG has established itself in the casual dining space with its portfolio of concepts and brands.

For this acquisition, Apollo agreed to pay TRG stakeholders 65p per share in cash.

Going forward, Apollo has agreed to support TRG in further developing its business by investing in the customer offering and future growth of its footprint.

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With its industry knowledge, Apollo also intends to back TRG and its management team through the next phase of growth for Wagamama, Pubs and Concessions.

TRG chairman Ken Hanna said: “TRG operates a diverse portfolio of some of the UK’s leading hospitality brands.

“As a result of ongoing positive management actions and the margin accretion plan we announced in March this year, the group has recovered well from the challenges of the pandemic and the cost of living crisis.

“The TRG Board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment.”

Last month, TRG reached an agreement with Big Table Group to sell its loss-making leisure arm, which includes restaurant brands such as Frankie & Benny’s and Chiquito.