Oakman sells two pubs as it undergoes strategic review

Oakman Inns and Restaurants has sold two of its pubs to McMullen’s amid plans for fresh investment.

 

The Rose in Wokingham, Berkshire, and the Polecat in Prestwood, Buckinghamshire, will now join the 100-strong McMullen portfolio, which is largely based in and around Hertfordshire.

 

The sale comes as Oakman undergoes a review of its strategic options, including a sale of the business and new investment.

 

Oakman Inns & Restaurants operates more than 30 properties across England.

 

The proceeds from the transaction will go towards the repayment of debt maturing in January 2025 as well as creating additional capital for future growth.

 

Oakman expects to end the year with site earnings before interest, taxes, depreciation and amortisation up 11.7% to £10.1m.

 

Peter Borg-Neal, chief executive, said: “While it will be a sad moment when we say goodbye to these sites and to the wonderful teams that run them, we are delighted that they are going to a very good home with McMullen’s. Everything I have learned about McMullen’s during this process encourages me to believe that they have similar values to Oakman and provide a seamless transfer for our people.”

 

Like many of his industry peers, he also warned of the repercussions of the budget and stated: “The recent budget announcements represent a severe body blow, as it does to the rest of our industry, and we will have no choice but to implement price increases to mitigate the swingeing increases in pre-profit tax.”

 

Oakman was advised on the transaction by Sapient Corporate Finance.