UK-based Mexican restaurant group, Tortilla Mexican Grill, has confirmed the acquisition of its largest European rival, Fresh Burritos, in a deal worth €3.95m.

Fresh Burritos is the second largest fast-casual Mexican restaurant group in Europe and the largest in France.

The acquisition includes 13 company-owned leasehold restaurants in Paris and other major French cities, and provides Tortilla with a springboard for franchise growth across Europe.

Tortilla has acquired the group through a combination of cash payment and bank debt roll-over. The deal has been funded from the Tortilla’s existing debt facilities and is expected to contribute £2.5m of additional annual adjusted EBITDA at 24 months maturation.

Chief executive of Tortilla, Andy Naylor, described the group’s acquisition of Fresh Burritos as a “gateway to mainland Europe”.

“With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad,” Naylor added. “We’re set to leverage this acquisition, just in time for the Paris Olympics.”

Fresh Burritos founder, Timothée Tronet, said: “As well as its 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.”

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