Alchemy Partners, the former backer of Revolution bars, is in exclusive talks to acquire Inn Collection, MCA understands.
The eight-strong North East-based operator, which is currently backed by Kings Park Capital, appointed advisors six months ago, as first reported by MCA. It is thought that it attracted attention from trade and private equity groups but that no frontrunner emerged.
Alchemy has since made a surprise approach and is now in advanced talks on a deal, which is likely to complete next month. The deal is understood to value the group in the region of £20m.
Alchemy, which was co-founded by former Intertain backer Jon Moulton, typically invests in distressed assets but is understood to be looking to broaden its portfolio.
Speaking to MCA in November, founder Keith Liddell told MCA that any investment would allow the group to accelerate its growth plans.
Inn Collection has been backed by Kings Park Capital since November 2013, when it invested £10m in the then three-strong group.
The group was advised by FinnCap.
