Grand Union ends private equity talks

30-Oct-2012 - Last updated on 11-Mar-2017 at 20:01 GMT

Grand Union Group, the London-based pub operator headed by Adam Marshall, says it has ended its talks with private equity in order to focus on building cash reserves for future self funded expansion.

The company will now focus on opening two to three new venues per year. It said it had received a “number of approaches” but chose to end talks in favour of organic expansion over the next 12 to 18 months.
Marshall said “The plan now is to continue growing reserves to take on two or three more £1m-a-year sites and build an even better trading profile. The company was founded only five years ago and we’ve focused on consolidation this year before we expand next.”
Meanwhile, Grand Union has surrendered the lease on its site in Ravenscourt Park. Marshall said: “The area wasn’t quite the right demographic and target market for us. This leaves us with eight sites all making good money.
“We think that we’ll be even more attractive to investors in the wake of improving our systems – we’ve installed Zonal EPOS; a £90k investment - and adding a couple more sites.”
The company has current EBITDA pre-central overheads of £1.4m. Grand Union’s most recent opening was Grand Union Paddington which the company said is performing very well, with £25,000 to £28,000 per week of net takings and annualised at site EBITDA of £260,000.