UK pub group Oakman Inns has completed the purchase of seven freehold pubs from private equity firm Downing for a reported £19 mln (€22 mln), reacquiring the assets which it sold five years ago.
The transaction was completed in three tranches, with the purchase of companies Downoak, Hedderwick and The Globe in Warwick. The move sees Oakman regain control of the Akeman, Tring; the Akeman Inn, Kingswood; the Crown & Thistle, Abingdon; Banyers House, Royston, Cherry Tree in Olney and Warwick's The Globe.
The newly formed Oakman sold its first seven pubs to Downing in 2014 when 'a shortage of growth capital', according to CEO and founder Peter Borg-Neal, prompted a search for equity. The pub group has since grown to 23 sites.
The seven freehold public houses have a combined EBITDA of £2.8 mln.
'Our recently announced deal to buy seven of the freehold pubs we operated for Downing is a transformational one for Oakman,' said Borg-Neal. 'However, while it represents the high point of our relationship with Downing to date, it does not mark the end of it.'
'I am immensely proud to have been able to help support the impressive growth of Oakman over the past four and a half years,' said Steven Kenee, a partner of Downing. Oakman has always demonstrated a principled approach to their business.'
Kenee added: 'This admirable ethos, coupled with a focus on ensuring the highest quality customer experience, has generated industry-leading sales and profitability growth as well as delivering great returns for our investors.'
