Enterprise Inns has acquired Unique Pub Company providing a return of over two times invested capital for the Cinven-led consortium that originally invested in the group. Enterprise Inns will acquire the 83.2% stake in the group held by Cinven, Legal & General Ventures and Princes Gate Investors for around £609m.
The Cinven consortium originally invested in the business in March 2002 when it purchased the estates of the Unique and Voyager pub estates from Nomura International. Enterprise Inns also acquired a 16.8% stake in the company and agreed a call option over the Cinven consortium’s shares as part of the transaction. The total value of the acquisition of the Unique and Voyager pub estates from Nomura was £2.013bn.
Since the acquisition the operations of the two estates have been merged and an acceleration of the lease conversion programme of Voyager’s estate undertaken. The combined estate was also the subject of a successful additional securitization programme that raised £855m. Following this securitization, capital was returned to the Cinven consortium and the terms of the call option altered to reflect this return of capital.
Dick Munton, Cinven partner, said:” This has been a highly successful investment for Cinven which has resulted in a return of over twice our invested capital.”