Under the changes, Intertain’s equity and debt is to be held equally by Barclays Ventures, and a consortium owned by investment group TPG Opportunities Partners and Goldman Sachs. They replace the previous owners, the banks West LB, RBS, Lloyds and Barclays.
Intertain chief executive John Leslie told M&C Report that there’s now a “growth agenda” in place for the 35-strong group, although it’s “too early to quote numbers” for expansion.
“We will only grow the business in quality locations,” Leslie said. “There are a number of towns and cities that we would like to get into.”
It comes as Intertain, which was formed in 2009 from the collapse of Regent Inns, continues its investment programme that began in the second half of 2010. Eleven sites have received major investments to date, with a further six planned for this year and the remainder next year. Returns on investment have averaged at more than 80%.
The company is not expected to wait until investments are complete before beginning its expansion programme. Leslie said: “We are going to be looking at growth options pretty shortly. We are just refining our thoughts.”
He said Intertain would consider packages for acquisition but said: “The problem with packages is you get some good and some not very good. We’re going to be choosy.”
The majority of Intertain’s sites operate as Walkabout. Leslie said that brand would be the initial focus for the expansion programme “because it has so much potential”.
Leslie said: “I am delighted that the business is now in a position whereby the refurbishment programme can continue at pace and site acquisitions are now back on the agenda for Walkabout.
“The Walkabout brand has tremendous pedigree, the ability to deliver excellent returns on investment and great potential for growth given that it is not represented in many of the key towns and cities in the UK. This is a very exciting time and we look forward to working closely with our new owners.”