Pub provider to acquire 18 new sites with OakNorth funding

SME bank OakNorth has provided funding to a national tenanted pub provider to enable its acquisition of 18 new pubs.

Red Oak Taverns will use the acquisition facility it arranged with OakNorth in order to acquire 18 pubs from Wiltshire-based Wadworth Brewery.

Launched in 2011, Red Oak Taverns specialises in acquiring and ‘breathing new life’ back into pubs that have been run-down or fallen into disrepair.

Led by co-founders Aaron Brown and Mark Grunnell, the company now has 179 sites across the UK, including 61 in the South West, 23 in South East and 18 in the North East.

Mark Grunnell and Aaron Brown, co-founders of Red Oak Taverns, commented: “We are delighted to have secured this quality portfolio of pubs from Wadworth.

“We believe the pubs and the licensees will benefit from Red Oak’s flexible approach to operated leased and tenanted pubs and from the £1m investment we have planned for the acquired portfolio.

Mohith Sondhi, senior debt finance director at OakNorth, added: “The pub sector is competitive and fragmented, so businesses in this industry require an experienced team who can deliver alternative strategies for weaker units and maximise the potential of better ones.

“Mark and Aaron have proven they can do this – they have built a strong platform and have a clear strategy to sustainably grow the business in coming years.”