Bar Group buys Wishing Well pubs
by The PMA Team Start-up company The Bar Group Limited has bought two existing pubcos Wishing Well Taverns and RP Wigham Limited.
The Bar Group, advised by Grant Thornton Corporate Finance, has acquired the entire issued share capital of Wishing Well Taverns for an undisclosed sum.
Wishing Well Taverns currently operates 22 units, of which 16 are tied leases and six are free-of-tie leases.
RP Wigham operates eight sites.
The two companies have a combined turnover of £13m. Recently, Wishing Well has launched a successful Bok Bar concept with venues in London's Blandford Street and Covent Garden.
Wishing Well boss Terry O'Sullivan is to take on a consultancy role with The Bar Group to assist with future expansion of Bok Bars, in particular.
Chief executive of The Bar Group Paul Wigham said: "Weare delighted to have acquired Wishing Well Taverns from Terry and Linda O'Sullivan.
It is a quality business, with a proven track record in both turnover and profit growth.
We look forward to working with Terry to expand the company.
"The community pub sector has been a much neglected area of the industry in recent years, and we believe that it offers significant opportunities for expansion."
Martin Davis, of agent Christie & Co, which sold Wishing Well Taverns, said: "This is a very significant deal in the present market and reinforces the fact that there are still purchasers for groups of good-quality leasehold pubs and pub companies.
"It is also good news that the banks and investors are prepared to take such a positive view and are prepared to fund new start-up pubcos for the right deal."
The Wishing Well estate has been sold a number of times in recent years.
O'Sullivan sold the freeholds of the estate to Ushers for £3.2m, who later sold the pubs to Unique in the autumn of 1999.
Unique then leased the Wishing Well estate back to O'Sullivan, who originally founded the business in 1994.
Last year, Wishing Well made a pre-taxprofit of £600,000 and was expected to hit the £1m level for the current year.
Debt funding for the deal was supplied by the Royal Bank of Scotland and Scottish Courage, with Leisure and Media VCTacting as the principal equity provider.
