LGV Capital in deal for Channel Islands pub group

Private equity group LGV Capital has agreed a deal to acquire SandpiperCI, the Hospitality division of the Channel Islands based Sandpiper Group.

The deal, for an undisclosed sum, marks the third change of ownership in a decade for the pubs and brewing business, which includes the former Ann Street Brewery estate.

The division includes 65 pubs located on Jersey, Guernsey and Alderney, as well as the Jersey Brewery and the two drinks distribution businesses, Victor Hugo (Jersey) and Bucktrout & Co (Guernsey).

LGV is backing a new chief executive, Mark Crowther, who formerly ran leased pub business London Town plc.

The deal marks a return for LGV return to the pub industry - it sold the Unique Pub Company to Enterprise Inns in 2004. Graham Turner, who was chief executive of both Unique and another LGV business, Tragus Restaurant Group, will become non-executive chairman of SandpiperCI.

Bill Priestley, a managing director at LGV, said: "We are delighted to have exchanged contracts for the acquisition of the Hospitality Division. LGV has a strong track record of investments in high quality, asset-based leisure businesses and we are looking forward to supporting the management team as they develop the business further."

Mark Crowther said: "We are excited to be partnering with LGV, which shares our vision of how to invest and develop these businesses further. We are confident that the business will thrive under LGV's ownership and that the benefits will be felt by all of our customers, suppliers and staff."

Debt for the deal, which will need the approval of Jersey's regulatory authorities, has been provided by HSBC and Allied Irish Bank