LDC generates 6.1x return on £50m sale of New World Trading Company

LDC has exited its investment in the fast-growing pub and restaurant business New World Trading Company (NWTC) in a £50m sale to Graphite Capital.

LDC originally invested £2.7m for a minority stake in NWTC in 2013 through the Hill Capital Food & Beverage Fund, which was set up to back early stage food and drink concepts.

Headquartered in Knutsford, Cheshire, NWTC was founded by the late Tim Bacon and Jeremy Roberts as part of the Living Ventures Group, opening its first outlet in 2011. It was spun out in 2013 as part of the transaction, with Living Ventures remaining a significant shareholder, alongside management and LDC and Hill Capital Partners LLP.

Today, the business operates 14 outlets nationally under five brands - The Botanist, The Oast House, Smugglers Cove, The Trading House and The Club House - and employs more than 900 people. Each concept offers traditional cask and craft beers, innovative cocktails, an all-day menu of homemade food including the celebrated ‘hanging kebab’ and live music.

The management team, led by Chief Executive Officer Chris Hill, has reinvested alongside Graphite Capital for a stake in the business.

The sale, which generates a 6.1x money multiple and IRR of 80% for LDC, was led by Tim Farazmand and supported by Alex Wilby. AlixPartners advised the shareholders, including LDC.

Tim Farazmand, from LDC, said: “Chris and the team have done an outstanding job of building on Tim and Jeremy’s earlier vision, launching and scaling several award-winning concepts across the UK which have truly innovated the market. The business’ success is another part of Tim Bacon’s legacy and testament to his own entrepreneurial spirit and creativity. We wish the team every success for the future.”

Chris Hill, Chief Executive of NWTC, said: “LDC has been an important part of our growth story over the last three years, supporting our expansion from two to 14 outlets, and backing our vision for the business. We’re excited to be building on that success with Graphite in the years ahead. ”

Omar Kayat, Partner at Graphite Capital, said: “NWTC has rapidly established itself as one of the most innovative and respected pub and restaurant operators in the market. The company’s multi-branded approach to all day-dining combined with live entertainment in the evening has been hugely successful nationwide. We look forward to helping Chris and his team in their continued expansion across the UK.”

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.