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29 November 2006

£24.5m funding package means more Geronimo pubs

“Passionate about being the best operators of
food-driven pubs”

Penta Capital (“Penta”) has taken a controlling interest in Geronimo Inns (“Geronimo”), the pioneer of quality food-driven pubs. Geronimo pubs offer great food and an eclectic selection of beers and wines in pubs where relaxed informality is the emphasis. The management team, led by Rupert and Joanna Clevely, is widely recognised as being an innovator in the pub industry, with a proven ability to turn poor performing pubs into “Oscar winners”.

Penta will invest up to £10.0 million in the business. Barclays Bank, its existing lender, is committing new facilities of up to £14.5 million. Penta is an established leisure investor, with investments in La Tasca and EAT.

Geronimo Inns is already a unique collection of 15 elegant pubs. The funding package will enable it to accelerate growth. The acquisition strategy will be focused on London, the South East and high density footfall sites, including sites at airports and railway stations. Management plans to double the size of the existing business over the next three years, through a mix of freehold and leasehold sites. Geronimo has already agreed to open new sites at Heathrow Terminal 3 and St Pancras International, which will benefit from the launch of the new Eurostar service in 2007.

Geronimo’s expansion will see sales increase from £14 million (forecast for the year ending June 2007) to £30 million during this next stage of its expansion.
Rupert and Joanna Clevely founded Geronimo in 1995. Following this transaction, the Clevely’s, who remain substantial shareholders in Geronimo, will continue to lead the growth of the business. The management team includes Chris Hutt (Chairman), Polly Dyson (Finance Director), Alf France (Operations Director) and Ed Turner (Commercial Director).

Geronimo Inns’ founder and CEO, Rupert Clevely said:

“Our mission has always been to create a high quality estate of pubs serving great food. This exciting partnership with Penta and Barclays will allow us to accelerate our growth.”