The purchase was on a debt and cash free basis, of which, £500,000 is contingent on the future of the business.
Peach operated 21 leasehold pubs in the south of England and Midlands that have average weekly takings (net of VAT) of about £30,000.
The sites also have a food mix of more than half (53%) of sales alongside strong profit and cash conversion.
Peach’s exposure to day time and early week trading provides a natural balance to 69-strong Revolution, which has a strong evening and weekend trade.
The entire Peach operations team, led by Chris Stagg, will remain with the pub company following the deal and current finance director Tony Bobath will assist in the integration of the two businesses.
Business opportunity
Trading in Peach’s current financial period (since 3 January 2022) has been strong with like-for-like sales having increased by more than 10% against 2019 figures.
The board anticipates 12-month site earnings before interest, taxation, depreciation and amortisation (EBITDA) for Peach in Revolution’s current financial year to be more than £5m with central costs about £3.5m on turnover over £30m.
Revolution Bars Group CEO Rob Pitcher said the deal was an “exciting and transformative opportunity” for the business.
He added: “It broadens our guest base, balances our day part sales and seasonality while providing another avenue for growth both organically and by acquisition.
“Peach is a quality business with great pubs, offering a premium experience. It has rebounded strongly from the dark days of the pandemic.
“Central to this success has been a strong people-focused culture with clear values, focused on making the right choices for guests and teams – a very similar approach to that taken at Revolution.
“We welcome the Peach team to Revolution, where they can continue their excellent work, delighting guests and seek continued personal development in a business with a multi-pronged strategy that has is similar values, ambition and drive for excellence, which Peach has clearly displayed over the past 20 years.”
New chapter
Pitcher also acknowledged the work of founders Lee Cash, Hamish Stoddart and Jo Eames for creating an “industry-leading collection of premium gastropubs”.
Stoddart outlined how Peach started two decades ago and the growth it has achieved over this time.
He said: “Twenty years ago, we opened the Rose & Crown in Warwick, believing every market town deserves a great gastropub, serving a fine steak and delicious glass of wine, offered with true hospitality. We have grown from one pub to 21, profitably for two decades.
“Today we announced the sale of Peach Pubs to the Revolution Bars for a consideration of £16.5m – this comes from an initial £140,000 investment and the returns include a large share to our executive and loyal teal, who have shared the unforgettable ride.
“With the news of the Peach acquisition by Revolution, Lee Cash, James Eames and I will be around a table, sharing good food with a fine bottle of wine and looking back on two decades of good times, tough times and a business and friendship of which, we are unbelievably proud.
“We’d like to thank every single person who has been Peachy along the way and wish everyone at Revolution and Peach an exciting successful new chapter.”
Revolution was advised by Sapient Corporate Finance while Peach was advised by finnCap Cavendish.
Yesterday (Tuesday 18 October), Revolution revealed it had delayed the publication of its preliminary results while it was finalising a new acquisition.
