'Business as usual' for Admiral Taverns following acquisition by private investment firm

Announced today, the sale of the 1,100-strong tenanted pubco marks the culmination of a three-year business transformation plan for the group since refinancing in 2009.

Since then, under the financial backing of shareholder Lloyds Banking Group, Admiral Taverns has disposed of a number of its pubs - 477 were sold in the most recent financial year​ - leading to a recent growth in turnover per pub of nearly 7 per cent.

Future potential​

The transaction marks a complete debt and equity exit for Lloyds Banking Group however the existing senior management team, led by executive chairman Jonathan Paveley, remain at the helm of the Chester-based business to continue to lead its development plans.

Admiral Taverns was keen to state that, while there may be an opportunity to add further tenanted pubs to its estate, the new investment would initially be focused on keeping the current, strong momentum of the group and maintaining 'business as usual'.

"This is a great transaction for Admiral Taverns and a tremendous start to 2013," said Paveley. "We are delighted that Cerberus has chosen to invest in Admiral and that it recognises Admiral’s future potential."

While the investment from an affiliate of New York-based firm Cerberus has not been disclosed, BigHospitality's sister publication M&C Report believes the deal is worth in the region of £200m.

"Cerberus’s support will help Admiral develop the business further and strengthen its reputation among pub licensees as the best tenanted pub group in the country," Paveley continued.

“Throughout this process, our over-arching aim has been to maintain our day-to-day support of our licensees and ensure continued smooth operations for our staff and our supply partners, and it’s pleasing to have achieved this," he added.

Strong management​

Lee Millstein, senior managing director at Cerberus, said he was pleased to be working with one of the 'strongest' management teams in the UK leisure industry.

"Their successful transformation of the Admiral business into a leading UK pub group has put the business on an upward trajectory. Admiral's business provides an ideal platform for the acquisition of additional tenanted pubs in the UK, and we look forward to working with the company’s management team and employees to grow the company," he added.

As well as Paveley, managing director Kevin Georgel, property and strategy director Andy Clifford and chief financial officer Glenn Pearson will continue to lead the business.