The transaction includes a debt refinancing with European credit investment firm Hayfin Capital Management
The loan was provided via Hayfin’s Director Lending strategy, which invests in loans to strong European middle-market firms as a long-term partner to support organic and acquisitive growth ambitions.
Red Oak was founded by Mark Grunnell and Aaron Brown in 2011 and now has more than 200 sites across its estate, which is mainly concentrated in the south, south west, north west and the Midlands in England.
Next evolution phase
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Co-founder and CEO Grunnell said: “This refinancing is a further step change for Red Oak and creates a platform for us to enter the next phase of our evolution and to grow the business significantly with our existing major shareholders.
“We have steadily built a relationship with the Hayfin team over the past eight years and we are delighted to complete this milestone transaction to allow us to work together on the next stage on our journey.”
The company was a client of OakNorth Bank since 2016, which became its sole lender in 2018, enabling the growth from 160 sites to 206. The bank will be fully repaid from the refinancing.
Grunnell added: “OakNorth has been instrumental to the growth and success of Red Oak Taverns.
“It has provided funding since 2016 and has assisted the business through the difficult Covid restrictions. We would like to thank them for their considerable support.”
The company made its first purchase of the year this month (March) with the acquisition of the Vine in Worthing, West Sussex.
At the end of last year (December), the company completed the acquisition of eight free-of-tie sites in Bristol for an undisclosed sum from Euphorium Pubs – its fifth portfolio acquisition in 12 months.
This followed the group securing funding with a £15m acquisition facility from OakNorth Bank.
The capital was used to acquire nine pubs from Hall & Woodhouse in September last year. The sites were across the south with pubs in Surrey, West Sussex, Dorset and East Sussex featured.