Pub operator Wear Inns gains £10m investment
BGF has invested £8m and NVM put a further £2m into the 15-strong business, which it has backed since start-up in 2006.
As part of the deal, BGF will take a minority stake in the business and join the existing board. The companies said the new £10m equity investment would enable Wear Inns to acquire further sites over the next few months, creating 40 new jobs, and providing flexibility for further acquisitions thereafter.
It is thought to have already agreed a deal on nine pubs spread across Yorkshire and the north-east. The new additions are expected to be open and trading by August and are thought to include some “iconic” north-east sites.
Founded in 2006 by John Weir, managing director, and John Sands, the former head of Pubmaster, Wear Inns focuses on the acquisition and management of freehold community pubs across the north-east and Yorkshire.
The estate currently includes: the Townhouse in Whitley Bay, the Millstone in Gosforth, the Black Bull in East Boldon, the Cross Keys in Washington and the Guidepost in Springwell, all in Tyne and Wear, the New Inn in Durham, the Priory in York, together with two in West Yorkshire — the New Inn at Wetherby and the Sun Hotel in Shipley — plus the Court House in Barnsley, South Yorkshire.
Since then, the company has built up an estate of 15 sites through regional and national acquisitions; from chains such as Mitchells & Butlers, Spirit, TCG Inns, Barracuda Pubs and Bars, and Greene King.
On average, Wear Inns has succeeded in improving the turnover of its pubs by c.90% within six months of their acquisition and refurb. In the past three years, Wear Inns has trebled its sales with net revenues totalling £7.3m.
