 Punch Taverns is the largest pub and bar operator in the United Kingdom.
Punch Taverns was headquartered in Burton upon Trent in Staffordshire and had around 8,400 leased, tenanted and managed pubs. Today, it is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Transaction
In 1998, the team formed Punch Taverns to acquire 1,428 pubs from Bass plc following regulatory changes that forced divestitures upon the UK brewing sector. This was the first ever tied pub securitization. In 1999, Punch Taverns was sold to TPG.
Investment Overview
This deal was completed while the TDR founding partners were still at DB Capital Partners. They believed that the Bass pub portfolio represented a high-quality tenanted pub estate and, while others were concerned about a lack of growth, they believed that operational improvements could supplement a very strong cash flow. After the acquisition the team concentrated on enhancing the capex programme and implementing supply chain savings as well as refocusing the business on lease conversions and on growing revenues and EBTIDA.
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