Wear Inns begins acquisition drive aided by BGF and NVM
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A pub group owned by NVM Private Equity and the Business Growth Fund (BGF) has begun its acquisitive growth strategy by purchasing nine venues from TCG Bars.
Wear Inns, which received a £10 million equity capital injection back in May, has expanded its operation by acquiring nine new sites.
The Wear Inns managed pub estate was backed by the Business Growth Fund (BGF) and NVM Private Equity in May, with the BGF providing £8 million and NVM £2 million. NVM originally invested in 2006 and holds a majority stake in the business.
On the back of the TCG Bars acquisitions, Wear Inns now has 24 premises and is planning on making further buys in the future.
Amongst its new sites are locations in Sunderland, Grimsby and Sheffield as the chain looks to expand its reach across the North of England.
Wear Inns has financed the site acquisitions with the £10 million provided by NVM and BGF. With the £2 million provided by NVM back in May, the private equity firm has now invested £6.2 million into the company.
John Weir, managing director of Wear Inns, says the new deal brings some 'iconic sites' in areas that the business knows well.
He adds, 'The pubs will complement our existing business and enhance our growth strategy. All of the pubs are planned to receive capital investment and some new retail trading formats in the near future; with a clear emphasis on standards, service and exceptional retailing.'
The nine-pub buy is the second time Wear Inns has dealt with TCG following its purchase of Cross Keys Washington in December 2009.
Further deals are planned for early 2013 and the business plans to create 40 new jobs as it grows during 2012.
David Colclough, investment director at BGF, comments, 'The expansion of Wear's estate of pubs [...] demonstrates the enormous potential for this business to grow through continued acquisition.
'We will continue to lend our support to the management team as they take the business to its next stage of development.'