Unique Pub Company

Activity
Tenanted pubs
Acquired
Mar 2002
Realised
Mar 2004
Sector
Consumer

Business
Cinven acquired the Unique and Voyager pub estates in March 2002 for €3.2 billion. The combined estates are known as the Unique Pub Company.

The acquisition comprised two separate pub estates: Unique and Voyager, between them operating 4,209 pubs in the UK. Unique was an estate of tenanted pubs, while Voyager was undergoing conversion from a managed to tenanted estate.

Strategy
Cinven led a consortium that included Enterprise Inns, a highly regarded tenanted pub operator, to acquire the business. Enterprise was granted an option to acquire Unique at a pre-determined price.

There was a clear strategy to implement management best practice, and to grow Unique's earnings through continuing the conversion of the Voyager estate into tenancies, optimising the balance sheet through a securitisation of the revenue streams, managing the estate through selective acquisitions and disposals to enhance return on capital employed, and targeted capital spend to increase rental and beer income.

Combining the two estates also realised cost and purchasing synergies.

Outcome
Cinven has sold its interest to Enterprise Inns, achieving a cash return in excess of two times invested capital.