LGV Capital ("LGV") announces contracts have been exchanged on the acquisition of the Hospitality Division of SandpiperCI (“SandpiperCI”). The deal is subject to the approval of the Jersey Competition Regulatory Authority. Financial details of the transaction have not been disclosed.
The Hospitality Division comprises 65 pubs located on Jersey, Guernsey and Alderney, the Jersey Brewery and the two drinks distribution businesses, Victor Hugo (Jersey) and Bucktrout & Co (Guernsey).
LGV has backed a new Chief Executive, Mark Crowther, the former Chief Executive of London Town plc, who will be supported by existing Hospitality Division directors, Declan Hearne (Finance Director) and Kenrick Brooks (Operations Director). Ed Daubeney will join the board as a Non-Executive Director and there will be a new Non-Executive Chairman in the form of Graham Turner, the Chief Executive of The Tragus Group of restaurants.
This marks LGV’s return to the pub industry, following its successful investment in The Unique Pub Company, the large UK-based pub company sold to Enterprise Inns in 2004. This will also be LGV’s third investment along side Graham Turner, who was Chief Executive of both The Unique Pub Company and Tragus.
LGV was attracted to the high quality nature of the pubs and will be looking to make some targeted investment in the estate so as to maintain its strong market position across all three islands. The brewery and distribution businesses represent first class trading operations, which have the potential to generate even stronger returns.
Commenting on the investment, Bill Priestley, a Managing Director at LGV, said:
"We are delighted to have exchanged contracts for the acquisition of the Hospitality Division. LGV has a strong track record of investments in high quality, asset-based leisure businesses and we are looking forward to supporting the management team as they develop the business further.”
Commenting on the acquisition, Mark Crowther, the new Chief Executive said:
“We are excited to be partnering with LGV, which shares our vision of how to invest and develop these businesses further. We are confident that the business will thrive under LGV’s ownership and that the benefits will be felt by all of our customers, suppliers and staff.”
Senior debt for the deal has been provided by HSBC and Allied Irish Bank
