Kuwaiti-based Kout Food Group has acquired UK’s Little Chef from private equity firm Rcapital in a deal valued at around £15million.

Rcapital had offered to sell the chain, which is more than five decades old, in May but did not finalise an agreement because it wanted to protect the brand name and most investors wanted to rebrand the business. Rcapital has now said that it has been able to secure terms under which the brand name would be protected.

Rcapital had acquired Little Chef in 2007 after it was placed under administration in the UK. It is believed that Rcapital accepted the offer form Kout Food in order to help preserve the business and its identity. The equity firm had also received bids from British coffee chain Costa as well as American fast food giants McDonalds and KFC for the chain.

Jamie Constable, chief executive of Rcapital, said, “Having owned Little Chef for a long time it feels like we are selling part of ourselves. But we take comfort that the new owners will take the brand to the next stage.”

Rcapital had cut 500 jobs at the chain and had reduced the total number of outlets from 234 to 83. The company will sell a total of 81 stores to the Kout Food Group under the agreement.