LGV Capital, the private equity firm and the original backers of Enterprise Inns, has backed a management buy-out of Amber Taverns.
LGV has backed the existing management team of Clive Preston, James Baer and Bryan Wardman, joint manging directors, Michael Norris, finance director and operations director Gary Roberts in buying out backers Unicorn Asset Management, Acuity Capital Management and MaxCap Partners.
Amber said it could now double the size of its estate in the next three to four years.
It is LGV’s fourth investment in the pub sector following its backing at the start of Enterprise Inns before it floated in 1995, co-funding the Unique Pubco, which was sold to Enterprise in 2004 and backing the management buy-out of the Liberation Group on the Channel Islands in 2008.
Bill Priestley, managing director of LGV, said he thought the death of the community pub had been “exaggerated in recent years”.
He said: “Amber is a perfect example of a business which has quietly gone about disproving the rule that pubs can only succeed where there is a food offering.
“From a start up in 2005, Amber has selectively expanded its estate and can now offer some of the best local pubs in the North. We, together with Amber’s long term funders, Lloyds Banking Group, look forward to supporting the management team to expand the estate further over the next few years.”
Clive Preston, chairman of Amber Taverns, described the MBO as an “excellent result for all parties” and promised, “The team has the ability to double the size of the business in the next three to four years with the help and support of LGV.”
Preston added: “For our original VCT backers Unicorn Asset Management, Acuity Capital Management and MaxCap Partners who have supported us for the last five years it provides a successful cash exit of 2.7 times their original investment and gives LGV, who already have a sound knowledge of our industry, a well established platform in the UK mainland licensed sector.
“Our management have taken a financial stake in the acquiring vehicle and are aiming to make it one of the fastest growing pub owner/operators in the UK.
"The team has the ability to double the size of the business in the next three to four years with the help and support of LGV.
“Our policy of purchasing carefully selected distressed or closed pubs in busy locations in the North of England and then making a significant investment in refurbishing them has been hugely successful.
"We add further value by featuring key sporting events on big screen TVs, and by selling premier brands at realistic prices.”
Christie & Co acted as property advisors for LGV.
