Investment supports continuity in management and strategy for 1,100-strong pub group Admiral Taverns (“Admiral”), the tenanted pub group, today announced that it has been acquired by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), one of the world’s leading private investment firms, from Lloyds Banking Group.
LONDON, January 4, 2013 — The transaction represents the launch of a new phase in the development of the Admiral Taverns business, marking the culmination of a three-year transformation of the group.
The existing senior management team – executive chairman Jonathan Paveley, managing director Kevin Georgel, property and strategy director Andy Clifford and chief financial officer Glenn Pearson – will continue to lead the business and guide its on-going growth and development.
Commenting on the transaction, Paveley said: “This is a great transaction for Admiral Taverns and a tremendous start to 2013. We are delighted that Cerberus has chosen to invest in Admiral and that it recognises Admiral’s future potential. Cerberus’s support will help Admiral develop the business further and strengthen its reputation among pub licensees as the best tenanted pub group in the country.”
Senior managing director at Cerberus, Lee Millstein, said: “Admiral has one of the strongest management teams in the UK leisure industry and we are pleased to be working with them. Their successful transformation of the Admiral business into a leading UK pub group has put the business on an upward trajectory. Admiral’s business provides an ideal platform for the acquisition of additional tenanted pubs in the UK, and we look forward to working with the company’s management team and employees to grow the company.”
The transaction brings to an end Lloyds Banking Group’s participation, providing a complete debt and equity exit. The group has been a shareholder in Admiral Taverns since a refinancing of the business in November 2009. The value of the transaction has not been disclosed.
The deal to acquire the 1,100-pub company based in Chester will impact neither day-to-day operations nor Admiral’s strategy to develop the UK’s leading collection of community pubs under the tenanted model.
Cerberus, which is headquartered in New York, is one of the world’s leading private investment firms with interests spanning multiple industries including banking and finance, leisure, manufacturing and real estate.
On the successful conclusion of the transaction, Paveley added: “Throughout this process, our over-arching aim has been to maintain our day-to-day support of our licensees and ensure continued smooth operations for our staff and our supply partners, and it’s pleasing to have achieved this.”
Lloyds Banking Group and the Admiral Taverns management were advised by PWC. Cerberus was advised by Sapient Corporate Finance.
For Admiral Taverns:
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About Admiral Taverns
Admiral operates an estate of just over 1,100 pubs through a tenanted model. It was founded in 2003 and is headquartered in Chester. Admiral’s pubs are predominantly wet-led community pubs in residential areas. The Admiral Taverns website is www.admiraltaverns.co.uk. Admiral also operates an app that enables prospective licensees to identify and research available pubs, which is supported on both iPhone and Android smartphones.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of the world’s leading private investment firms. Cerberus has more than US $20 billion under management invested in four primary strategies: distressed securities & assets; control and non-control private equity; commercial mid-market lending and real estate-related investments. From its headquarters in New York City and large network of affiliate and advisory offices in the US, Europe and Asia, Cerberus has the on-the-ground presence to invest in multiple sectors, through multiple investment strategies in countries around the world.