Livingstone Serves Up Another Tasty Transaction
November 2006
In another example of its sector focused deal origination, Livingstone has advised Penta Capital, the established leisure investor with interests in La Tasca and EAT, on its investment in Geronimo Inns (“Geronimo”), the pioneer of quality food-driven pubs.
In late 2005, the two firms started to work together to identify opportunities for investment in the wine bar and food-led pub sector. Michelle Holford, the Livingstone Leisure Analyst, says: “Given both firms’ in-depth knowledge of the sector, we identified Geronimo as an ideal target, from a list of 20 ‘possibles’, which ticked all of the key boxes we were looking for.”
The Clevely’s, who remain substantial shareholders in Geronimo, will continue to lead the Geronimo management team, which is widely recognised as being an innovator in the pub industry, with a proven ability to turn poor performing pubs into “Oscar winners.”
Geronimo Inns’ founder and CEO, Rupert Clevely said: “Our mission has always been to create a high quality estate of pubs serving great food. This exciting partnership with Penta and Barclays will allow us to accelerate our growth.” Penta will invest up to £10.0 million in the business, with Barclays Bank, its existing lender, committing new facilities of up to £14.5 million.
Livingstone deal leader Daniel Domberger comments: “Given its growth to date, its position in the market place, and its ongoing potential, Geronimo offered Penta the right balance of a stable core business, exciting growth potential and an excellent management team.” Geronimo’s expansion will see sales increase from £14 million (forecast for the year ending June 2007) to £30 million during this next stage of its expansion.
Craig Armour from Penta said. “We wanted to find an investment in the food-led pub sector, and chose Livingstone to help us find the right deal. We are delighted with their input and advice.” As Simon Cope-Thompson comments: “We have known the Penta team since they started their business and were keen to find a deal we could complete together. We are delighted that the Geronimo team have chosen Penta and Barclays to provide them with the funds to enable them to achieve significant future growth.”
For further information contact:
Simon Cope-Thompson
T: +44 20 7484 4706
E: sct@livingstonepartners.co.uk
Daniel Domberger
T: +44 20 7484 4731
E: domberger@livingstonepartners.co.uk
