Terra Firma

Voyager Pub Group

Description

Voyager Pub Group owned a portfolio of 982 unbranded, managed pubs and six leased pubs distributed throughout Britain. The managed pub companies acted as retailers, directly operating the pubs they own, employing the staff and bearing the expense of maintenance and development.

Strategy

Terra Firma identified that improvement in value could be achieved by redefining the business from a managed to a tenanted estate. This would increase the cash generated from the portfolio, eliminate large portions of the cost base and improve the quality of cash flow available for future securitisation.

Outcome

At the time of sale, Terra Firma was in the process of refinancing the acquisition debt on Voyager. Given the attractive terms offered by a consortium of trade and financial buyers, Terra Firma decided to sell Voyager in March 2002, together with Unique Pub Company.

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