Young's snaps up pub chain Geronimo Inns

A husband and wife team today sold the 26-strong chain of pubs they have built up over the past 15 years to Young & Co for £60 million.

Geronimo Inns includes classic pubs such as The Elgin in Ladbroke Grove and the Duke of Clarence in South Kensington but also more modern outlets at St Pancras International, Heathrow and Westfield.

Rupert and Jo Clevely, who started the business in 1995, will collect just over £8 million with the rest of the purchase price going to private-equity firm Penta Capital and to pay off bank debt.

Stephen Goodyear, chief executive of Young's, said: "We've known Geronimo for years and this was a great opportunity to accelerate the expansion of our managed estate.

"Their pubs are highly complementary to ours. Food makes up a higher proportion of their sales and their pubs are a little bit more female friendly."

Rupert Clevely is joining the board of Young's as managing director of Geronimo, which the brewer intends to continue running as distinct separate business.

His wife, Jo, is also becoming a consultant to the brewer.

Rupert said: "I'm delighted that the Young's board wants to continue to embrace and retain Geronimo's inimitable DNA."

Geronimo is expected to make profits of £8.2 million this year and Young's plans to make savings of £1.5 million a year through the deal.

Young's is financing the deal with a £100 million loan from Royal bank of Scotland and Barclays, which replaces an existing £40 million facility.