The £11.25m deal will see Various Eateries create a new brand, The Linwood Collection.
The board also intends to change the company’s name from Various Eateries to Coppa Collective, reflecting its ‘wider portfolio and long-term direction’.
“Linwood marks an important step in the evolution of the Group,” says Various Eateries CEO Mark Loughborough.
“We are bringing into the business a small collection of premium pubs with rooms that have earned their reputations the right way, through great hospitality, careful attention to detail and a real sense of place. They are destinations with loyal followings, and our priority is straightforward: protect what people already love about them and build from there.”
Loughborough adds that he rates the format highly in the current market.
“Premium pubs with rooms combine food and drink with accommodation and a broader, destination-led appeal. Done well, that mix can deliver resilience and attractive economics, and we believe these sites have the quality to do exactly that.”
The Hugh Osmond-founded group expects to complete on Wild Thyme & Honey in the Cotswolds; The Hare & Hounds in Berkshire; The Wellington Arms in Hampshire; and The Stag on the River in Surrey towards the end of the month.
The group has also agreed terms to potentially acquire another pub in Surrey, The Queen’s Head.
The pub is currently subject to an asset of community value (ACV) process, meaning the acquisition cannot exchange until the relevant statutory notification and moratorium period has expired, which is expected to take at least six weeks.
Four of the five sites are freehold. The Wellington Arms is held on a long leasehold and its acquisition remains subject to landlord consent to assign the lease.
The group expects to fund the acquisition through new debt financing and existing resources.
It has secured a £15m debt facility with HSBC UK Bank plc, comprising an £8m three-year term facility with a seven-year amortisation profile and a £7m revolving credit facility.
The facility is intended to be available at completion and will be used to part-fund the acquisition and support the group’s wider growth and working capital requirements.
“This acquisition is fully aligned with the approach we set out at our full-year results,” adds Loughborough. “We are building momentum, we have a clearer playbook and we are ready to act when high-quality opportunities arise on the right terms. Alongside Coppa Club and Noci, Linwood broadens the Group in a way that fits our culture and our ambition.
“As Coppa Collective, we will be clearer about the breadth of what we are building, and I am excited to welcome new colleagues and new guests into the Group.”