Red Oak Taverns is set to acquire a portfolio of 18 pubs in the South West from Wadworth & Company after securing a loan from Oak North Bank.
The leading tenanted pub provider tapped into the £10m Acquisition Facility arranged with OakNorth last year (£42m) as part of a wider refinance of the Red Oak Taverns business.
Since its launch by co-founders Aaron Brown and Mark Grunnell in 2011, Red Oak Taverns has acquired 179 pubs across the country, developing a reputation for breathing life back into pubs that have been run-down or fallen into disrepair.
As things stand the operator has 61 sites in the South West, 44 in the North West, 26 in the Midlands, 23 in South East, 18 in the North East, five in Wales and two in Scotland.
Speaking of the new acquisition, Mr Grunnell and Mr Brown, said: “We are delighted to have secured this quality portfolio of pubs from Wadworth.
“We believe the pubs and the licensees will benefit from Red Oak’s flexible approach to operated leased and tenanted pubs and from the £1m investment we have planned for the acquired portfolio.
“Having completed a successful refinance of our business with OakNorth last year, we knew they’d be the right partner to take this transaction forward and we’re grateful to Mo and the team for their ongoing support.”
Mohith Sondhi, senior debt finance director at OakNorth said: “The pub sector is competitive and fragmented, so businesses in this industry require an experienced team who can deliver alternative strategies for weaker units and maximise the potential of better ones.
“Mark and Aaron have proven they can do this – they have built a strong platform and have a clear strategy to sustainably grow the business in coming years.
“We’re delighted that after their first experience with us last year, they’ve come back to complete another transaction, and we look forward to continuing to support them in the future.”