Bowmark backs buyout of Drake & Morgan
It is thought that Bowmark will back a management buyout of the five-strong chain led by Jillian MacLean. The Imbiba Partnership-backed Drake & Morgan appointed PwC to review its strategic options for the next stage of its growth last year.
It is understood that through the new backing, the chain, which will open two new sites in Holborn and St Paul’s over the next few months, will look to grow to up to 15 sites in the capital and also explore opportunities in other major cities.
Bowmark is believed to have beaten off competition from an unnamed private-equity bidder for the business, which was believed to be hoping to realise a sale price near the high teens/£20m mark.
M&C Report revealed last month that Novus Leisure had pulled out of the running after offering around £17m for the group.
Bowmark, which previously backed Living Ventures and the Living Room bar chain, would seem a good fit for the group and a successful deal could lead to further consolidation in the capital’s bar sector, with Corney & Barrow a possible target.
A successful deal would leave Bowmark with a similar sector-facing portfolio as Piper Private Equity, which currently backs Be at One and Loungers.
Maclean teamed up with serial entrepreneur John Connell to launch the chain with Connell’s Imbiba Partnership backing in 2008. It opened its first site, The Refinery, in Southwark that September.
In September, Drake & Morgan reported a 44.6% increase in EBITDA to £2.07m for the year to 31 March 2012. The group said it had “exceeded expectations”, with turnover up 44.3% to £16.4m. Pre-tax profit stood at £1.27m, up from £960.4k.
