UK: Lloyds sells stake in Admiral Taverns to private equity group Cerberus
14:47 04 January 2013
PART-nationalised banking group Lloyds has offloaded its stake in pubs group Admiral Taverns in a deal valued at around £200million, including debt.
The group’s stake in Admiral, which owns around 1,100 pubs in the UK, has been acquired by United States-based private equity investor Cerberus Capital Management.
Lloyds took control of Admiral through a debt-for-equity swap in 2009 and yesterday’s deal ends its interest in the group by wiping out £150m of loans.
Cerberus said that Admiral’s existing management team, consisting of chairman Jonathan Paveley, managing director Kevin Georgel, property director Andy Clifford and finance chief Glenn Pearson would remain in place.
Lee Millstein ofCerberus said: “Admiral has one of the strongest management teams in the UK leisure industry and we are pleased to be working with them.
“Their successful transformation of the Admiral business into a leading UK pub group has put the business on an upward trajectory. Admiral’s business provides an ideal platform for the acquisition of additional tenanted pubs in the UK.”
Mr Paveley said: “This is a great transaction for Admiral Taverns and a tremendous start to 2013.
“We are delighted that Cerberus has chosen to invest in Admiral and that it recognises Admiral’s future potential. Cerberus’s support will help Admiral develop the business further and strengthen its reputation among pub licensees as the best tenanted pub group in the country.”