Harry Ramsden cashes in its chips

By THIS IS MONEY
Updated:

 

Harry Ramsden founding chairman John Barnes is cashing in his chips to the tune of £480,000 after selling out today to leisure and media giant Granada Group for £20 million.

The fish and chip shop empire that launched in Guisley, West Yorkshire more than 70 years ago is being bought at 193p a share, a 33% premium to last week's 145p closing price.

Analysts said that Granada's first acquisition for three months made strong strategic sense. Granada already has a relationship with Harry Ramsden as a franchise holder of 14 outlets.

The deal follows the termination of an exclusive agree-ment that allowed Granada to operate the Burger King franchise at its motorway service stations. Rivals such as Welcome Break, can now open the fast-food outlets. Granada plans to use the acquisition of the 56 chip shops as a platform for further expansion of the brand across the Granada estate, including its service stations.

Harry Ramsden floated 10 years ago and, while enjoying an initial good run as a quoted company, has struggled in the past year when its shares hit a 112 1/2p five-year low. Today they jumped 3 1/2p to 190p.

Granada has irrevocable undertakings on 48% of Harry Ramsden's share capital, including almost 7% owned by the directors.

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