Unquote

RCP backs Graphite’s Laine Pub Company

  • Ellie Pullen
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Risk Capital Partners (RCP) has invested in The Laine Pub Company, a Brighton-based operator of pubs (formerly called Inn Brighton), alongside existing investor Graphite Capital.

Graphite is invested in the company through its London Stock Exchange-listed investment trust, Graphite Enterprise. The company's existing management team are also shareholders in the business.

Under the dual ownership of RCP and Graphite, Laine plans to open five new pubs per year for the next four years, starting in London later this year.

Graphite established Laine's (then Inn Brighton) in April 2007 through the merger of existing Graphite portfolio company C-Side and Brighton pub operator Zelgrain.

Graphite had acquired C-Side in March 2001 for a total of £15m, according to unquote" data. The buy-in/management buyout (BIMBO) saw Graphite commit around £7m in equity with the balance provided as a debt package by Bank of Scotland.

Debt
Existing lender Royal Bank of Scotland has provided senior debt and a capital expenditure facility to facilitate the transaction.

Company
Founded in 2007 and headquartered in Brighton, Laine currently operates 46 pubs, 39 of which are located in Brighton with the remaining six in London. A seventh London pub is set to open later in the year.

The company also operates three microbreweries, from which it makes a range of craft beers. Laine focuses the décor of its pubs on the heritage of Brighton.

The business generated £25m in revenues last year.

People
Gavin George is the CEO of Laine, while Gary Pettet is the company chairman. Ben Redmond and Ralf Goad represented RCP in the deal, while partner Omar Kayat worked on the deal for Graphite.

Advisers
Equity (Graphite) – King & Wood Mallesons SJ Berwin, Michael Miranda, Martin Bowen, Agnes Abosi (Legal); Rees Pollock, Jonathan Munday (Financial due diligence); BDO, Adam Frais, John Jehan (Tax).
Equity (RCP) – Deloitte, Jon Lake (Corporate finance); Pinsent Masons, Tom Leman, Emma Dawe, Chris Watts (Legal); Aon UK, Nuala Read (Insurance due diligence).

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