Case study

New World Trading Company: Expansion for The Botanist owner

Investment supported roll out from two to 14 pubs during a three year private equity partnership.

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Sector
  • Retail & consumer
  • Travel & leisure

New World Trading Company (NWTC) operates 26 pubs including The Oast House and The Botanist.

Employees: 900

Deal type
  • Development capital
Exit type
  • Private equity sale
Exit date

09/06/2016

Exit value

£50m

Investment

£2.7m

The Team
Region

The New World Trading Company (NWTC) is the operator of a number of pubs, bars and restaurants across the UK, including well-known names such as The Botanist.

Early backing

NWTC’s management team originally secured LDC’s support for its organic growth plan in 2013.

LDC invested £2.7m for a minority stake in the business through the Hill Capital Food & Beverage Fund, which was set up to back early-stage food and drink concepts.

Originally part of the Living Ventures Group, NWTC was spun out in 2013 as part of the deal, with Living Ventures remaining a significant shareholder, alongside management and LDC and Hill Capital Partners LLP.

LDC has been an important part of our growth story over the last three years, supporting our expansion from two to 14 outlets, and backing our vision for the business. We’re excited to be building on that success with Graphite in the years ahead.”
Chris Hill, Chief Executive
NWTC

New trading opportunities

In 2016, NWTC hailed exceptional trading across its sites after group turnover almost doubled to £17.1m (year ending March 2015), up by 83 per cent on a year earlier. Pre-tax profits increased by 22 per cent over the same period. During the partnership with LDC, NWTC opened 12 new outlets.

In June 2016, LDC exited its investment in NWTC in a £50m sale to Graphite Capital. The sale generated a 6.1x money multiple and IRR of 80 per cent for LDC.