Martin Grant, the chief executive of Inn Partnership, is to receive £3m after the sale of the company to Pubmaster, according to industry sources.
Grant, the former chief executive at Swallow group, received only £355,000 when he was sacked from that company three years ago. He was headhunted by Nomura to run Inn Partnership after the Japanese finance house's Principal Finance Group bought the company from Greenalls, now De Vere.
Nomura was persuaded to put Inn Partnership on the market after the City firm Schroder Salomon Smith Barney approached it late last year and said it could arrange a trade sale.
Pubmaster, which announced last week it had has completed the purchase of Inn Partnership's 1,200 pubs for a net £489m, was one of five companies who stepped forward last November when the sale notice went up. Punch Group and Legal & General Ventures, the private equity firm, both decided against bidding for Inn Partnership, after deciding its franchise structure was too complex. The others, Laurel, the pub estate group acquired by Morgan Grenfell Private Equity from Whitbread last May, and Enterprise Inns, the tenanted pubs company, had fallen away in the running by the middle of December.
The final deal involves a £101m payment for the shares of Inn Partnership, plus another £422m for debt and other obligations, minus £34m in cash that comes with the business, which works out at a net £400,000 per pub.
The purchase gives the Hartlepool-based Pubmaster a total of 3,200 pubs, an increase of 60%, and pushes it from sixth place to fourth among Britain's largest pub groups, behind Punch, now number one, Nomura, which still controls 4,300 pubs, and Enterprise Inns.
In the year ended 30 September 2001, Inn Partnership's ebitda (earnings before interest, tax, depreciation and amortisation) was £51.7m, meaning the deal comes at a multiple to ebitda of 9.46, about average for the industry at the moment, according to informed observers.
Inn Partnership's brands include Clubhouse, a combined traditional and sports bar; Your Local Tavern, Country House and Country Fayre, which are designed to give traditional/family dining/drinking in rural locations.
Its holdings represent the former brewery pub estates of Greenall Whitley in the North West of England, Shipstone's in the East Midlands, Davenport's in the West Midlands and Devenish in the West Country. Pubmaster was founded on the former estates of Cameron's brewery in the North East of England and Tolly Cobbold in East Anglia.
Nomura still owns the Unique Pub Company, Voyager and Wizard Inns.
Grant, the former chief executive at Swallow group, received only £355,000 when he was sacked from that company three years ago. He was headhunted by Nomura to run Inn Partnership after the Japanese finance house's Principal Finance Group bought the company from Greenalls, now De Vere.
Nomura was persuaded to put Inn Partnership on the market after the City firm Schroder Salomon Smith Barney approached it late last year and said it could arrange a trade sale.
Pubmaster, which announced last week it had has completed the purchase of Inn Partnership's 1,200 pubs for a net £489m, was one of five companies who stepped forward last November when the sale notice went up. Punch Group and Legal & General Ventures, the private equity firm, both decided against bidding for Inn Partnership, after deciding its franchise structure was too complex. The others, Laurel, the pub estate group acquired by Morgan Grenfell Private Equity from Whitbread last May, and Enterprise Inns, the tenanted pubs company, had fallen away in the running by the middle of December.
The final deal involves a £101m payment for the shares of Inn Partnership, plus another £422m for debt and other obligations, minus £34m in cash that comes with the business, which works out at a net £400,000 per pub.
The purchase gives the Hartlepool-based Pubmaster a total of 3,200 pubs, an increase of 60%, and pushes it from sixth place to fourth among Britain's largest pub groups, behind Punch, now number one, Nomura, which still controls 4,300 pubs, and Enterprise Inns.
In the year ended 30 September 2001, Inn Partnership's ebitda (earnings before interest, tax, depreciation and amortisation) was £51.7m, meaning the deal comes at a multiple to ebitda of 9.46, about average for the industry at the moment, according to informed observers.
Inn Partnership's brands include Clubhouse, a combined traditional and sports bar; Your Local Tavern, Country House and Country Fayre, which are designed to give traditional/family dining/drinking in rural locations.
Its holdings represent the former brewery pub estates of Greenall Whitley in the North West of England, Shipstone's in the East Midlands, Davenport's in the West Midlands and Devenish in the West Country. Pubmaster was founded on the former estates of Cameron's brewery in the North East of England and Tolly Cobbold in East Anglia.
Nomura still owns the Unique Pub Company, Voyager and Wizard Inns.
