Heartstone raises a further £3m

Recently-formed Heartstone Inns has raised a further £3 million in a second round of private equity funding enabling it to rapidly expand its chain of freehold food-led country pubs serving fresh local produce.

The funding provided by Halogen Holdings, which was introduced to Heartstone by Beer & Partners, will be used to acquire hand-picked sites as well as building the infrastructure required to grow the chain effectively.

Based in the south and south east, Heartstone Inns was launched at the start of 2007 by Stuart Hawthorn (managing director) and James Birch (finance director), both of whom have extensive experience in the UK pub and brewing sector having worked at Greene King, Innspired and Refresh UK.

Heartstone's initial equity backing came from Bfm Partners, a privately owned fund management and investment company established by Andrew Haining and Robin Black, formerly partners of Botts & Company. Lloyd Marshall and Edward Beale, both directors of Halogen Holdings, have been appointed to the board to represent the interests of Halogen alongside the founder directors. This equity round - and subsequent rounds - will be complemented by a long-term funding line from HSBC, enabling the chain to grow from its existing two sites to around 30 or more within the next three to five years.

Hawthorn said:"This funding round, together with options and further commitments, will bring in a total of nearly £4.5 million over the next few months. ​

"This will enable us to grow the chain quickly and efficiently towards a level where maximum value creation is likely to be seen. We have already acquired the first two pubs, which are trading ahead of plan, and are in the final stages of completion on a further two.

"Beyond that, there is now a whole raft of new opportunities that we are able to look at."