Epiris, a mid-market buyout firm which previously invested in TGI Fridays, is going head to head with Guy Hands’ Terra Firma private equity firm in its pursuit of the pub company, Kleinman reports.
Amber Taverns, a wet-led community pub operator led by James Baer, has some 170 sites, principally located across the north-west, Midlands and Wales.
Baer told MCA last year that the value-led company, which runs under an operator-managed model, has been self-funded so far, but would be open to new equity investment to take it to the next phase of growth.
The freehold business has been opening at a rate of 14-18 pubs a year and has capitalised on distressed high streets, turning former retail units into community pubs.
Guy Hands is one of the most high-profile financiers in the UK, and previously orchestrated profitable deals involving the Unique and Voyager pub chains while at Nomura more than a decade ago.
Hands is said to have been willing to contribute roughly £20m to the purchase price, which is expected to be over £200m.
Kleinman writes Terra Firma had been seeking co-investors to back a potential deal, although Epiris now looks like the favourite.
He said with Stonegate Group major refinancing recently completed, this could improve sentiment towards the industry among credit investors.
“Even if he doesn’t get the green light for an Amber takeover, expect to see Hands pursuing other assets in the sector,” Kleinman adds.
