Livingstone Serves Up Another Tasty Transaction

  • mar. 2007

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”.

Simon Cope-Thompson, Partner
Tel: 020 7484 4706
Email: sct@livingstonepartners.co.uk

Daniel Domberger, Deal Leader
Tel: 020 7484 4731
Email: ddomberger@livingstonepartners.co.uk


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