TFG Capital has backed a takeover of Parity Bars by rival hospitality company Enjoy Pubs by providing £2.4m of funding
The debt and equity deal takes Enjoy Pubs’ portfolio of venues to 17, including The Psalter in Sheffield and Abacus in Chesterfield.
Enjoy Pubs was launched last year by hospitality entrepreneur Adam Taylor.
Doncaster-based TFG Capital was brought into the deal at short notice after another funder pulled out.
James Mortimore, director at TFG, said: “This was an unusual funding proposition with a tight deadline due to a high street funder backing out at the last minute.
“However, there was a strong business with good levels of security and a driven management team and we are delighted to have been able to help Adam complete the acquisition.”
Ben Slack, corporate partner at Clarion advised on the transaction.
Mr Mortimore added: “Despite the legal complexities of the transaction, working alongside Clarion, we were able to complete the deal in just three weeks.”
Adam Taylor, director of Enjoy Pubs, said: “We saw a fantastic opportunity to acquire a number of leasehold bars throughout the UK, but needed to act quickly to secure the deal.
“TFG Capital was able to provide the flexibility we needed as well as working within tight timescales.”
TFG Capital was founded by financier James Mortimore last September with the aim of plugging the funding gap for businesses seeking expansion capital, but which are unable to obtain bank support.
The firm, which also has offices in Leeds, provides SMEs loans between £50,000 and £3m for up to two years.
Mr Mortimore said: “As SMEs continue to struggle to access mainstream finance, we are seeing a huge demand for funding as the economy continues to recover.”