Balaclava and Refresh swoop for Hobgoblin
Balaclava, the tenanted pub business, and Refresh UK, the drinks company, are in talks to buy the Hobgoblin Group's pub estate and brewing interests, respectively.
Hobgoblin Group had been seeking a new financial partner since 3i, the biggest venture capitalist (VC) in the UK, announced it would sell its stake in the business last year.
Hobgoblin and 3i have been in partnership since 1993 but the VC is thought to be looking to exit industry entirely and will also sell its stake in Wessex Taverns, the North-east operator valued at £40m.
Hobgoblin comprises 29 pubs and the Wychwood Brewery.
The pub estate is predominantly off the high street but near town centres, mainly on drinking circuits, and aimed at a young audience with an emphasis on students.
The estate is primarily leasehold with a mix of landlords including Unique and Punch.
In the past two years it has opened three "superpubs" with capacities of up to 800. The Leeds outlet is currently pushing £40,000 in weekly sales.
The brewing arm, based in Oxfordshire, produces 30,000 barrels a year. Its flagship extra-strong ale is the sixth best-seller in the UK.
Balaclava, which lease its pubs from Punch, would double its estate. The company was set up last year by former Greene King director Leo Murphy.
Refresh UK, which brews Manns Orginal and Lowenbrau, was born out of the sale of Ushers of Trowbridge.
It is thought that Ian Rogers, the current Hobgoblin chief (pictured), will take timeout following the trade sale. Mr Rogers has spent 13 years building the business. A source close to the talks said: "Ian has a healthy cheque coming his way - he certainly won't need to worry about his mortgage."
Hobgoblin is being advised by BDO Stoy Hayward and Ian Edward Associates.
It is hoped the transaction will be completed by the end of the month.
Despite the market conditions and the spectacular fall of the TMT sector (telecoms, media and technology) it is believed 3i will focus on the high-tech sector. Late last year the company reported interim losses of £1bn and shed 185 staff - 17 per cent of its workforce.
Related stories:
Hobgoblin seeks new backer (15 November 2001)
