Hawthorn Leisure sold to NewRiver for £106m

May 25th, 2018 | Posted in: Uncategorized

Hawthorn Leisure has been sold to NewRiver REIT for £106.8m. The deal sees the group extend its pub estate from 331 to 629 sites and includes 97 Scottish pubs such as The Victoria Bar, Glasgow; The Jolly Gin and Craft, Falkirk; The Queens Park Cafe in Glasgow and The Grapes in East Calder.

The Hawthorn brand will be retained and over time both estates will be transitioned into a single operating platform. The acquisition will not affect the publicans or Partners of either portfolio and they will be able to continue on their existing agreements.

NewRiver chief financial officer Mark Davies said, “We’re delighted to announce this acquisition as we believe there are clear synergies between Hawthorn Leisure’s business and our own which is strengthened by a similar ethos and business culture. As well as being an excellent fit with our own estate, the Hawthorn Leisure portfolio presents obvious opportunities around scale. Importantly, Hawthorn Leisure operates mainly wet-led local pubs on a mix of leased, tenanted and managed models, and there’s very little geographical overlap with our sites.

“NewRiver is an ambitious, forward-thinking company, and we’ve been looking for some time to add to our pub portfolio through a large strategic acquisition such as this.  Our business is focused on the dynamic convenience and community-led retail and leisure sectors, and the Hawthorn Leisure acquisition provides this as well as further diversification, while strengthening our position as a major operator of pubs in the UK.”

Gerry Carroll, CEO of Hawthorn Leisure said, “The NewRiver acquisition is the best possible outcome for our people and 298 leased and managed pubs across England, Scotland and Wales.  The deal provides a strong platform for our ambitious growth plans and ensures we not only retain all staff and our head office, in Marston Green, but the Hawthorn Leisure brand and values that we live by.  NewRiver has bought into the Hawthorn Leisure team, as much as the pubs, so for us it’s business as usual.  As such, we will continue to support our Partners to achieve the best possible results and be famous for great people, great pubs and great propositions.”

NewRiver acquired its first portfolio of 202 pubs from Marston’s PLC in December 2013, followed by a further 158 from Punch Taverns in 2015 while Hawthorn Leisure was founded in 2014 through the acquisition of 275 Greene King pubs, and 88 from R&L. Since inception, the pub company has invested £13.5m in its estate, with a return on investment of 30%. In the past three years, Hawthorn Leisure’s like-for-like profit has continued to grow.

The two management teams are now in the process of conducting a full review of the operational structures of both portfolios, with the intention of combining best practices from each estate across all areas, including operations, purchasing, finance, marketing, supply chain and distribution. Of the 298 Hawthorn Leisure pubs 85% are leased and tenanted, and 15% managed.

David Shipton, asset development director for NewRiver’s pubs, said, “This is really positive news for both companies and their respective portfolios of community pubs and the customers that they serve. We are excited to begin this new partnership demonstrating our position as long-term investors in pubs. It’s important to note that all partners in both estates will be able to continue on their existing agreements, and where pubs are let on a tenancy-at-will (TAW) basis, we’ll look to attract partners on longer term, substantive tenancy and lease agreements.”

 

 


Borthwick Castle’s head chef to champion Scotland in National Chef of the Year

Tue 21st May 2019

Derek Johnstone, Head Chef at Borthwick Castle in Midlothian, is the only Scottish chef to have reached the semi-finals of this year's Natio... Read more.

DOUNE CASTLE IN STIRLING RENAMED TO CELEBRATE LEGACY OF GAME OF THRONES

Tue 21st May 2019

Pubs in Stirlingshire may get a boost from an influx of Game of Thrones fans making pilgrimages to the area.... Read more.

Plans submitted to re-open Glasgow’s Cabin restaurant

Tue 21st May 2019

Plans have been submitted with Glasgow City Council to re-open the Cabin restaurant on Dumbarton Road in the Whiteinch area of the city. It ... Read more.

Bloc+ pops up on former Nonya site

Mon 20th May 2019

Bloc pop-ups on former Nonya site John Burns, owner of Bloc+ on Bath Street in Glasgow has opened a Bloc pop-up on the site of the former N... Read more.

First Minister Nicola Sturgeon officially opens new McQueen Gin distillery

Mon 20th May 2019

First Minister Nicola Sturgeon has officially opened McQueen Gin's brand-new 6,200²ft distillery in Callander. ... Read more.

WINE AND TEA BAR OPENS

Mon 20th May 2019

The Chaumer is a recently opened teahouse and wine bar for Edinburgh’s Queen Street – with a very interesting back story. ... Read more.

New owners at Braeval Hotel

Thu 16th May 2019

Paul and Lyndy Geddes have taken over the Braeval Hotel and Bandstand Bar and Restaurant in Nairn. Lyndy was previously a director in an omb... Read more.

Max McFarlane joins the Ardgowan Distillery team

Thu 16th May 2019

Whisky maker Max McFarlane has joined the Ardgowan Distillery team – with a plan to create and release a new series of whiskies later thi... Read more.

McEwan’s Lager relaunches

Wed 15th May 2019

The new look McEwan’s Lager launches in on-trade this month.... Read more.

Today’s your last chance to enter the Glenfarclas Highland Single Malt 105’ Cask Strength Cocktail Competition!

Wed 15th May 2019

Today’s the cut-off for entering the Glenfarclas Highland Single Malt ‘105’ Cask Strength Cocktail Competition – so get your... Read more.

Brand News: Avva Scottish Gin

Wed 15th May 2019

CASK FINISH GIN FROM AVVA SCOTTISH GIN AVAILABLE TO TRADE CUSTOMERS FOR THE FIRST TIME The latest release of Cask Finish Gin from the brand ... Read more.

Brand News: Loch Lomond Whiskies

Wed 15th May 2019

Loch Lomond Whiskies’ Loch Lomond 12 Year Old Single Malt Scotch Whisky has triumphed at the Bartenders’ Brand Awards, including the to... Read more.

Mixologists causing a stir

Tue 14th May 2019

Today we profile DANIEL ELPHINSTONE of Orchid in Aberdeen and DAVID GODDARD of Bar One, Inverness.... Read more.

Mixologists causing a stir

Mon 13th May 2019

Today it's the turn of DIMI SAVVAIDIS The King of Islington Dundee and DANNY MCMANUS Kelvingrove Cafe Glasgow .... Read more.

WEST Brewery initiates employee ownership scheme

Mon 13th May 2019

WEST Brewery founder Petra Wetzel has established a Share Incentive Plan (SIP) and placed an initial 10% of the company’s shares into... Read more.

SCOTTISH GOVERNMENT’S 20P DEPOSIT RETURN SCHEME GETS MIXED REACTIONS FROM LICENSEES AND TRADE BODIES

Thu 9th May 2019

The Scottish government‘s Deposit Return Scheme (DRS) of 20p has been branded ‘ridiculous’ by one licensee, while others t... Read more.

New look for The Ploughman

Thu 9th May 2019

The Plough constellation is also known as The Big Dipper and the new-look bar at The Ploughman in Peterculter is hopefully set for anything ... Read more.

HIDE YOUR WHEESHT

Thu 9th May 2019

So far, the secret location of Glasgow’s only underground speakeasy, Wheesht, has been kept under wraps. ... Read more.

Mixologists causing a stir

Thu 9th May 2019

This month we profile 10 of the best and today it's the turn of Jamie Swift of Edinburgh's Dragonfly and Sarah Berardi of Draffens in Dunde... Read more.

Dundee’s Blue Room

Wed 8th May 2019

AJ McMenemy, the operator behind the Dundee-based Macmerry 300 group that owns The King of Islington, Abandon Ship and Bird & The Bear has o... Read more.