Exclusive – Guy Hands’ private equity firm Terra Firma amongst Amber Taverns bidders: Terra Firma Capital Partners, the private equity firm founded by Guy Hands, is amongst the bidders for Amber Taverns, the circa 170-strong, wet-led, freehold community pub operator, Propel has learned. Terra Firma is understood to be one of three private equity groups which have shown an interest in Amber Taverns, which last year hired investment bank Rothschild to explore its strategic options that could result in a sale of the business, which is believed to be valued at circa £230m. Propel understands that second round bids for the business were due this week. Terra Firma, which previously backed the Odeon/UCI cinema group, also previously invested in the likes of Unique Pub Company and Inn Partnership. In 1994, former Goldman Sachs banker Hands joined Nomura, and the following year, the firm made an investment in the UK pub industry through the acquisition of Phoenix Inns, which had a portfolio of 1,800 pubs. In 2002, the principal finance group including Hands spun out of Nomura to form Terra Firma, exiting legacy pubs portfolio investments in Inn Partnership, Unique Pub Company and Voyage Pub Company. In 2004, Terra Firma sold the 63-strong Wizard Inns business to Wolverhampton & Dudley Breweries (which would become Marston’s) for £89.9m. Hands stepped down as chairman and chief executive of Terra Firma last year, with the company now led by his son, Richard. In April, Amber Taverns reported its turnover increased by 15% to £110.4m in the year to 4 February 2024, with underlying earnings rising from £22.4m to more than £25m. Like-for-like sales increased by 11.3% for the year and were up 6% in the first six weeks of the new financial year. It said it had an “encouraging pipeline with a variety of good new site opportunities” and was looking to add another 15 new pubs to its growing portfolio each year. It said: “The group has consistently achieved historic high returns of more than 24% on new freehold acquisitions and has a wide range of target towns both within regions and locations where Amber has an existing presence, as well as new geographies, to continue to expand its footprint with well invested pubs at the heart of their communities with broad appeal, across the UK.” Amber Taverns features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 947 companies. Amber Taverns’ turnover of £95,738,210 for the year ending 5 February 2023 is the 109th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Cineworld prepares to unveil details of restructuring plan involving closure of 25 UK sites: Cineworld is preparing to unveil details of a restructuring plan tomorrow (Friday, 26 July) that will result in the closure of around 25 of its circa 100 sites across the UK. City sources told Sky News that around half a dozen Cineworld cinemas would begin a closure process immediately and shut later in the summer. The precise number of job losses was unclear, although one source said it would be “at least in the hundreds”. The company has been in preliminary talks with some of Britain’s biggest commercial landlords, including Landsec and Legal & General, about its restructuring plans. A majority of creditors will need to approve the cinema operator’s proposals, with rent reductions being sought at a further 50. Roughly 25 cinemas will be unaffected if the plan is approved. A number of landlords are said to be considering opposing the proposals, although it is unclear whether that would be in sufficient number to block the restructuring plan. Cineworld initially held talks about a sale of the business with prospective buyers but has now switched its focus to a formal restructuring process. The company is being advised by AlixPartners. Cineworld trades from more than 100 sites in Britain, including at the Picturehouse brand. Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier. Cineworld’s multi-billion dollar debt mountain forced the company into Chapter 11 bankruptcy protection in 2022. It delisted from the London Stock Exchange last August. Under a deal struck last year, several billion dollars of debt were exchanged for shares, with a significant sum of new money injected into the company by a group of hedge funds and other investors. Since it emerged from bankruptcy protection, Cineworld has appointed a new leadership team, installing Eduardo Acuna, who ran Mexican cinema brand Cinepolis’s operations in the Americas, as its chief executive. Cineworld also operates in central and eastern Europe, Israel and the US.