Hawthorn Leisure Limited, the innovative new pub company established to acquire, invest in and support pubs across the UK, announced yesterday that it has exchanged contracts for the acquisition of a portfolio of 275 tenanted and leased public houses from Greene King.
The transaction is scheduled to complete by early June 2014, and Hawthorn Leisure’s declared strategy is to work in close partnership with its tenants, providing management support and capital investment to help them drive growth and maximise the potential of their pubs.
Gerry Carroll, Chief Executive of Hawthorn Leisure, commented:
“There is a fantastic opportunity to work hand in hand with tenants, who we see as our genuine partners, backing them with management support, advice and investment. With strong financial backing, an efficient business model and a high calibre team dedicated to helping our partners to maximise the success of their pubs, Hawthorn Leisure is in a unique position to support and invest in these pubs and to help them fulfil their potential.”
Additional acquisitions
Significantly, Hawthorn Leisure will also seek to grow through additional acquisitions.
Hawthorn Leisure is backed by Avenue Capital Group, May Capital LLP and management. The majority of the capital for the acquisition is being provided by Avenue Capital Group, a global investment firm.
Richard Furst, CIO of Avenue Capital Group and Senior Portfolio Manager of the Avenue Europe Strategy, commented:
“We are delighted to announce this acquisition. We believe the UK tenanted pub sector provides significant opportunities for further acquisitions, both from larger pub companies and from financial institutions who, in many situations, have become owners following financial restructurings, and may not therefore be natural investors in this sector. Hawthorn Leisure is an attractive business to manage and invest in these pubs and to pursue further acquisition opportunities as they arise.”
And Noah Bulkin, founder of May Capital, commented: “This is an important and exciting acquisition which firmly establishes Hawthorn Leisure with immediate scale and we are delighted to have a financing partner in Avenue Capital with both the financial strength and sector expertise to allow Hawthorn to continue to pursue additional acquisitions.
“The operational and financial capabilities are now in place to build a business which can support current tenants and enhance the value of these pubs through further investment.”