Entrepreneurs and hospitality industry veterans John Weir and John Sands founded Wear Inns in 2006 and, as a result of the purchase announced today, now operate 24 pubs with plans to expand further this year and next.
"We are highly delighted to acquire this package of well-known pubs, with some iconic sites situated in areas that we know very well," Weir, the Wear Inns managing director, said this morning.
"The pubs will complement our existing business and enhance our growth strategy. All of the pubs are planned to receive capital investment and some new retail trading formats in the near future; with a clear emphasis on standards, service and exceptional retailing."
Private equity
It is not the first time Wear Inns have made a purchase from managed pub operator TCG after acquiring The Cross Keys pub in Washington nearly three years ago. However it is the first major step on the acquisition trail since the County Durham-based business announced it had received £10m investment to fund its ambitious expansion plans.
The investment, secured in May this year, consisted of £8m from the Business Growth Fund (BGF) and £2m from NVM Private Equity (NVM) which has backed the pubco since it was founded.
"It has been a complicated process of raising funds and making the acquisitions over the last six months," Weir revealed.
"As we develop we are hopeful of adding another four North East and Yorkshire pubs to the portfolio this year; with more acquisitions planned in early 2013. We should also create 40 new jobs as the business grows this year, with further new jobs expected in early 2013."
Wet-led
The nine new pubs will be incorporated into the Wear Inns portfolio which is focused on wet-led community venues in the North of England. All the sites remain managed, giving the company more control over the drinks offer, and unbranded.
The new pubs acquired by Wear Inns from TCG are: The Bedroom in Whitley Bay, Black Bull in Morpeth, Greens in Sunderland, Lambton Arms in Chester-le-Street, Ye Olde Lang Jack in Whickham, Ship and Royal in South Shields, Lloyds Arms in Grimsby, Porter Cottage in Sheffield and The White Bear in Barnsley.