NewRiver has acquired Bravo Inns Limited, the north west pub group made up of 44 wet-led community pubs.
The pubs are to be transferred into the Hawthorn Leisure estate, which was purchased by NewRiver for £106.8m in May 2018.
The £17.9m price tag for Bravo Inns represents an EBITDA multiple of 6.8x, with the transaction expected to generate annualised outlet EBITDA of £2.6m, equating to a yield on cost of 14%. This excludes £300,000 of synergies expected to be realised through the transfer of Bravo Inns to the Hawthorn Leisure platform.
“The UK pub sector has experienced a recent revival in transaction activity and, as an early investor into community pubs, we have been tracking the success of Bravo Inns for some time,” says Mark Davies, chief financial officer of NewRiver and CEO of Hawthorn Leisure. “The transaction will increase our portfolio weighting in community pubs and demonstrates the value of our Hawthorn Leisure platform in identifying acquisitions that can deliver higher yielding sustainable cashflows with scale driven synergies. A further attraction of this acquisition is the quality of the pub estate and the pub partners. We look forward to welcoming Bravo Inns and its pub partners to Hawthorn Leisure.”