The finance comes from the M&G UK Companies Financing Fund 2, a £500m fund that provides corporate loans to mid-sized UK companies, typically with a turnover between £25m and £500m. The fund is backed by the UK Government through the Business Finance Partnership, Prudential and several UK pension funds.
James Pearce, head of direct lending at M&G Investments, said: "We are lending to established and ambitious mid-sized UK businesses, such as Hall & Woodhouse, with stable financial track records, successful management teams and strong business plans.
"This long term financing to Hall & Woodhouse, a family owned company founded in 1777 with over 1,400 employees, helps them to align their debt to the long term nature of their business. We expect this to help support their plans to acquire and develop new public houses.”
Passion
Martin Scott, finance director at Hall & Woodhouse, said: "The M&G Direct Lending team impressed us from the outset. They demonstrated a genuine passion for our business, flexibility in their approach and a willingness to invest heavily up front in getting to know everyone involved in taking us forward.”
Fenton Burgin, partner in the debt advisory team at Deloitte, who advised Hall & Woodhouse on the deal, said: "This innovative and market-leading transaction is one of the first non-bank, long-term financings in the regional brewing sector since the global financial crisis and reflects the strength of Hall & Woodhouse’s business."