Reports indicate that La Casa de Toño is looking to sell its business for $400 million

The family-owned Mexican restaurant chain La Casa de Toño is looking to sell its business in a deal that could exceed $400 million. Paving the way for accelerated expansion, according to Bloomberg, citing sources familiar with the matter.

“La Casa de Toño has hired BBVA Mexico as its exclusive financial advisor, according to investor presentations reviewed by Bloomberg. Which highlight the chain’s growth potential in Mexico, Latin America, and the United States,” the business news platform said in a report.

According to Bloomberg, restaurant operator Grupo Gigante SAB is among the bidders, along with other Mexican conglomerates.

This is around twice the value of the two biggest restaurant chains in the area, Alsea, which runs Starbucks and Domino’s Pizza in Mexico and Spain, and Arcos Dorados, which oversees McDonald’s across Latin America, according to Bloomberg.

Requests for feedback from Gigante and La Casa de Toño were not answered. According to the article, BBVA Mexico declined to comment.

Since its founding in 1985, La Casa de Toño has expanded to run over 70 restaurants throughout Mexico City and the surrounding area. According to the platform, the company has developed a devoted customer base with extremely long lines and is most renowned for its pozole and flautas.

“One of the presentations describes La Casa de Toño as the ‘undisputed leader’ of Mexican restaurants in the country. Notes that its shareholders have received repeated proposals from potential buyers, without identifying them,” Bloomberg revealed.

The deal would include the chain’s more than 70 restaurants. Gigante operates specialty retail chains, such as Office Depot, as well as restaurants, including Shake Shack, the report added.