SandpiperCI agree terms to acquire The Guernsey Pub Company Limited
14 January 2020SandpiperCI, the Channel Islands’ largest retailer, has exchanged contracts to buy the entire share capital of The Guernsey Pub Company Limited which is the holding company of Randalls of Guernsey.
Sandpiper will acquire the company for £28.5m. The company, which is listed on the International Stock Exchange, yesterday raised £15m as part of a shares placing, with net proceeds of the placing to be used to part-fund the acquisition.
The acquisition is subject to clearance by The Channel Islands Competition and Regulatory Authorities (CICRA) and it is hoped to conclude the acquisition by the end of February 2020.
Executive Chairman, Tony O’Neill said: “When we listed Sandpiper on The International Stock Exchange at the end of May 2019, we indicated that we intended to accelerate the growth of the business by looking at opportunities in adjacent consumer facing sectors in addition to the ongoing optimisation of our retail business. We now have around 200 local investors and this acquisition represents our first major investment as a listed entity. Randalls of Guernsey is well known to Bailiwick residents as it operates its own brewery and 20 pubs and hotels across the islands of Guernsey and Sark. The company also operates the duty free outlets at Guernsey and Alderney airports. The organisation is well managed and will complement our existing retail operations. The management team has ongoing plans to continue the development of the business and Sandpiper is looking forward to working with them to further enhance and support performance.”
No redundancies are expected as a result of Sandpiper’s acquisition.
The deal comprises 13 tenanted and six managed pubs, plus one managed fish bar in Guernsey and one managed pub in Sark. All but four of the sites are freehold.
Sandpiper currently operates more than 80 sites across the Channel Islands, Gibraltar and Spain under brands such as Costa, Burger King, Hotel Chocolat, Cornish Bakery and Marks & Spencer.