Leisure firm Inn Collection Topco has secured a £6.5m financing package to buy a collection of four successful North East pubs.
The company, a new operation backed by Kings Park Capital and Santander Corporate & Commercial, has acquired three inns located in Northumberland – The Lindisfarne Inn in Berwick, the Bamburgh Castle Inn in Seahouses and the Hogs Head Inn located in Alnwick, all run by businessman Keith Liddell who will now lead the operational management team at the Inn Collection.
The Kings Head in Newton under Roseberry has also been acquired.
The deal will allow the Inn Collection team to embark upon a ‘buy and build’ growth strategy over the next few years. Inn Collection’s board also includes Paul Clark, the former chief executive of Virgin Hotels.
Jamie Tillman, of Kings Park Capital said: “We are delighted to be partnering with Keith and Paul, in bringing together a collection of pubs, which with over 100 rooms will be one of the largest providers of beds in the North East. i
“With a supportive banking partner in Santander we’ll be looking to acquire further units that fit the Inn Collection model.”
A package of senior debt and working capital facilities to support the transaction was provided by Santander Corporate & Commercial.
The deal was led by Adrian Rowles, director in the structured finance - financial sponsors team and Stephen Carmichael, relationship director.
Rowles said: “We hope this new financing package provides the management team with an ideal platform to consider new acquisition opportunities.
“We have been impressed with the operational experience of Keith and his team during a period where many businesses in this sector have experienced real challenges. Kings Park Capital also brings both financial backing and a wealth of leisure sector experience. This attractive combination coupled with the new growth aspirations of Kings Park Capital over the next few years represents an exciting opportunity for the Inns Collection in the region.”