Hall & Woodhouse, the Dorset-based brewer and pub operator, has secured a £20m, three year loan from M&G Investments to help it acquire and and invest in new pubs.
The finance comes from the M&G UK Companies Financing Fund 2, a £500m fund that provides corporate loans to mid-sized UK companies, typically with a turnover between £25m and £500m. The fund is backed by the UK Government through the Business Finance Partnership, Prudential and several UK pension funds.
M&G also recently provided funding to Caffe Nero.
James Pearce, head of direct lending at M&G Investments, said: “We are lending to established and ambitious mid-sized UK businesses, such as Hall & Woodhouse, with stable financial track records, successful management teams and strong business plans.
“Mid-sized UK companies have been increasingly looking to diversify their financing and borrow over longer time periods. Funds such as UK Companies Financing 2, open up substantial opportunities for established companies looking at expansive long-term plans, due to the financial foresight and planning benefits long term finance provides them with.
“This long term financing to Hall & Woodhouse, a family owned company founded in 1777 with over 1,400 employees, helps them to align their debt to the long term nature of their business. We expect this to help support their plans to acquire and develop new public houses.”
Martin Scott, finance director at Hall & Woodhouse, said: “The M&G Direct Lending team impressed us from the outset. They demonstrated a genuine passion for our business, flexibility in their approach and a willingness to invest heavily up front in getting to know everyone involved in taking us forward.”
Fenton Burgin, partner in the debt advisory team at Deloitte, who advised Hall & Woodhouse on the deal, said: “This innovative and market-leading transaction is one of the first non-bank, long-term financings in the regional brewing sector since the global financial crisis and reflects the strength of Hall & Woodhouse’s business.
“Securing long-term, committed capital from one of the UK’s leading and longest established asset managers provides the company with considerable financial flexibility underpinning its continued success and the delivery of its long term objectives.”
M&G recently made £930m of loans to UK mid-cap firms, via the first M&G UK Companies Financing Fund, and has made around £5bn of private corporate loans and private placements since 1997.
