UK-based Tortilla Mexican Grill has boosted its presence in the European fast-casual Mexican restaurant market by acquiring its largest rival, Fresh Burritos, in €3.95m ($4.2m) deal.
The acquisition includes 13 directly owned restaurants across major French cities and the rights to a network of 19 franchised locations.
Tortilla Mexican Grill CEO Andy Naylor said: “Tortilla's international ambitions are no secret, and acquiring Fresh Burritos is our gateway to mainland Europe.
“With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad. We're set to leverage this acquisition, just in time for the Paris Olympics.
“We've assembled a top-tier European team [...] to navigate this new market. The brand synergies are clear, a new central kitchen is in the works, and our dedicated team is raring to go. We're primed for sustainable growth abroad.”
The London-listed company said this move aligns with its "Vital Five" growth strategy, which emphasises international development and a focus on franchising.
The acquisition is expected to bolster Tortilla's presence, particularly in France, where Fresh Burritos is the largest fast-casual Mexican restaurant group.
The acquisition was facilitated through a combination of cash payment and bank debt rollover, utilising Tortilla's existing debt facilities.
Tortilla Mexican Grill added that the deal is projected to add £2.5m to its annual adjusted earnings before interest, taxation, depreciation and amortisation two years after the acquisition's maturation.
Fresh Burritos founder Timothée Tronet said: “I started Fresh Burritos after returning home from a stint in America, where I fell in love with Mexican cuisine. Our brand was the first of its kind in France, offering quick and affordable, customisable Mexican-inspired dishes.
“I have long admired Tortilla and couldn’t think of a better brand to partner with to take the French business to the next level. As well as their passion for the product and our category, Tortilla’s operational model and scale will be an incredible asset to our franchisees.
“There is great enthusiasm in France and Europe in general for Mexican food, and Tortilla is the best positioned to take advantage of the market trends.”
