The Magic Pub Company
Cinven led the acquisition of 271 pubs from Scottish and Newcastle in June 1994, a further 15 from other sources and together with an experienced management team formed The Magic Pub Company.
Magic Pub operated the 286 pubs in the southern half of England. The estate comprised well-sited properties which had been neglected in previous years in terms of both upkeep and management.
Cinven supported a management team, which had previously successfully implemented a similar strategy, to develop the profitability of the estate by: substantially refurbishing each property, rebranding the public houses, offering an improved range of drinks at the right price, introducing food offerings and controlling and motivating the entire workforce. This ambitious strategy effectively repositioned the group at the forefront of the managed pub industry and transformed the value of the business.
The performance showed dramatic growth in profit and turnover, and in July 1996 the company was sold to Greene King.
Multiple returned on investment: 3x