Laine Pub Company, the Brighton and London-based group, has acquired the New Pub Company from founder Peter Linacre, in a deal thought to be worth just under £4m, MCA has learnt.
New Pub Company operates seven pubs within the M25, all but one of which is transferring to Laine Pub Company under the transaction, which was acted on by Davis Coffer Lyons.
The estate, which consists of the Black Lion in Hammersmith; Camden Eye in Camden; Charles Holden in Colliers Wood; Glasshouse in New Malden; Griffin in Whetstone and Hare & Hounds in Claygate, is expected to make EBITDA of £0.84m on sales of £6.1m for the financial year to 31 March 2017. This excludes the Telegraph in Putney Heath which is remaining with Linacre.
Laine already operates 12 pubs in the capital, having opened The Honor Oak in Forest Hill in February.
Laine’s chairman Gary Pettet, who negotiated the deal on Laine’s behalf, said: “Peter has built a great business in a fantastic estate of pubs. We are very pleased to have now reached agreement with him on the acquisition of New Pub Company and I am grateful to him for his professional approach during the negotiations. We wish Peter the best of luck with the Telegraph and other future endeavours.”
Laine’s chief executive Gavin George said: “The New Pub Company estate is operated by six exceptional management teams whom we are very pleased to welcome into Laine’s London business. We will use Laine’s support structure to help them develop their businesses further but hope also to learn much from them, particularly in the area of food service where Peter’s pubs have always been particularly highly regarded”.
Linacre said: “The shareholders are pleased to be selling the business to Laine Pub Company. I have known Gary and Gavin for many years and believe they will take our fantastic portfolio to the next level of development. I am also delighted to be retaining our largest food led site - The Telegraph in Putney Heath. We wish Laine Pub Company and all our colleagues in New Pub Company, continued success.”
Paul Tallentyre, executive director, Davis Coffer Lyons, which acted for New Pub Company, said: “Operationally, like the Laine pub model, the NPC pubs benefit from different styles and trading platforms, each provides an appropriate offer for its location, demographics and all include fresh food, together with exciting ales and a wide range of wines and spirits. This was a fantastic opportunity for Laine Pub Company to acquire a series of profitable, cash generative and growing businesses to its portfolio, in a very competitive market. The current turnover and projections for the properties illustrates significant potential for the new owners.
“The London pub market has proven increasingly desirable for property investors due to its diverse economy and the benefit of a weaker exchange rate that has assisted in encouraging higher visitor numbers, as well as the robust underlying asset value. Successful pub operators continue to seek good quality sites in London in which to roll out their brands.”
Mick Howard, operational commercial strategy director for Star Pubs, which owns the six freeholds, said: “Heineken has been the beer and cider partner throughout Laine’s estate for over twenty years” commented “and during that time a very good relationship has developed. This partnership has manifested itself in activities as diverse as beer development and outside event operation, and now we are delighted to be partnering with them in pub retail.”