Acquisition

RNS Number:4607T
The Clapham House Group PLC
19 December 2003


19 December 2003


                           The Clapham House Group PLC

                    First acquisition successfully completed

The Clapham House Group PLC ("Clapham House" or "the Company") is pleased to
announce that it has completed its first acquisition, The Real Greek Food
Company Limited ("The Real Greek"), following the Company's admission to AIM on
10th November 2003.

Clapham House was admitted to AIM in order to exploit acquisition opportunities
within the UK restaurant sector. The Company's strategy is to create value for
shareholders through acquiring and actively developing a small number of
quality, branded restaurant formats predominantly in and around the M25 region
for expansion into a high growth restaurant group.

In line with this strategy, the directors are pleased to announce the
acquisition on 18 December 2003 of the entire issued share capital of The Real
Greek, which currently operates three restaurants. The multi-award winning
restaurant The Real Greek (Time out Best New Restaurant Award 2000), first
opened in Hoxton, London in September 1999. The Real Greek Mezedopolio was
opened in October 2001 in a site adjoining the original restaurant. The
Mezedopolio was designed to offer a more informal atmosphere, and to provide a
range of more affordable Meze dishes. The growing appetite for simple,
Meze-style cooking inspired a similar format with significant growth potential -
"Souvlaki & Bar", which launched to good reviews in Clerkenwell in May 2003.
Since this concept combines the benefits of delicious food with a lively bar,
the directors of Clapham House feel the Souvlaki & Bar, and the Real Greek
brand, will fulfil their growth potential in an under-developed market.

The initial consideration for the entire issued share capital of The Real Greek
is #363,000. In addition, there is an earn-out element, payable in two tranches,
which is to be based on a multiple of five times future profits before tax.  The
total earn-out element is capped at #8.775 million and will be satisfied by the
issue of loan stock or, at the Company's option, up to 50% by the issue of
shares.

The Company will also provide a loan facility to The Real Greek of up to #1.6
million to allow the business to be developed and expanded. Clapham House will
charge interest to The Real Greek on any sums drawn against this facility at a
commercial rate.

The existing management team of The Real Greek, comprising Theodore Kyriakou,
Paloma Campbell and Mark Yates, will be responsible for the day-to-day
management of the business, supported by the directors of Clapham House. They
have a combined restaurant industry experience of over 50 years, managing and
developing a range of brands including Livebait and Break for the Border.
Theodore Kyriakou is regarded as one of the most innovative chefs in London. The
management team will enter into new service agreements with The Real Greek.
These agreements have a 12 month notice period and provide that remuneration
will be paid at #50,000 p.a. per person. Paul Campbell and David Page of the
Company will join the board of The Real Greek.

As a key factor in the deal, the earn-out arrangement has been designed to
ensure that management continue to work as a dynamic team and fulfil the
potential for expanding, in particular, the Souvlaki & Bar concept.

The directors of Clapham House believe the acquisition of The Real Greek is an
exciting first step in fulfilling their investment strategy and look forward to
working with The Real Greek management team.

For the year to 30th September 2003, The Real Greek had EBITDA before
exceptional items and directors' costs of #216,000. The Real Greek's net assets
as at 30th September 2003 were #122,000.

David Page, Clapham House's Chairman said:



"We are delighted to announce our first acquisition. The Real Greek is an
excellent business with very busy, popular, and profitable restaurants and a
first rate management team. This purchase provides us with a platform to make an
exciting and fresh offering more widely available to the public. We were
impressed by how passionate the operators are about the food and its sourcing,
yet have still managed to create restaurants with a fantastic atmosphere. This
is the first step for Clapham House in implementing its strategy and we look
forward to working with the management of The Real Greek."




Enquiries:

The Clapham House Group PLC
David Page, Executive Chairman                               Tel: [phone]
Paul Campbell, Chief Executive                               Tel: [phone]


Noble & Company Limited
John Llewellyn-Lloyd                                        Tel:  [phone]
David Ovens                                                 Tel:  [phone]

Citigate Dewe Rogerson                                      Tel:  [phone]
Sue Pemberton

www.claphamhousegroup.com

www.therealgreek.co.uk

END




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