Yorkshire-based bar operator lands £19m investment deal
Bar operator Arc Inspirations is set to accelerate its growth after securing significant investment from BGF – the UK and Ireland’s most active growth capital investor – for a minority stake in the Martin Wolstencroft-led business.
BGF is investing £19m into the Leeds-headquartered business. The deal will mean the company will look to double its footprint over the next few years by opening multiple bar sites in major UK cities, deploying its “cluster” strategy.
The funding announcement marks a new phase for the business, paving the way for an accelerated rollout of its three premium brands Banyan Bar & Kitchen, BOX and Manahatta. The investment will support the company’s ambition to double the business from its current 18 venues, delivering at least four new site openings per year over the next three-to-five years.
Wolstencroft said: “We’re absolutely delighted to have secured this investment from BGF who are committed investors with a track record of supporting growth and success in the hospitality and leisure sector.
“This funding will enable us to expand our business significantly, allowing us to take advantage of substantial market opportunities over the next few years, as we take our winning brands to more key cities across the UK.”
The deal marks the first time Arc has introduced external investment to the group. Its expansion to date – since Wolstencroft and co-founder Chris Ure launched the business in 1999 – has been funded by the business and more recently through a renewed partnership with HSBC.
Wolstencroft, Ure and managing director Anni Opong remain “significant” shareholders in the business.
As part of the deal, non-executive director Steve Richards, CEO of Parkdean Resorts and chairman of UKHospitality, will continue supporting the executive leadership team as non-executive chair.
The investment comes on the back of a year of resurgence and recovery for the business after the challenges of the pandemic. Arc Inspirations recently posted record annual sales, in excess of £40m, and last autumn opened two new landmark venues, in Birmingham (Manahatta) and Deansgate, Manchester (BOX).
Advisers to the deal were: Arc Inspirations – KPMG (Christian Mayo), Gordons (James Fawcett, Amy Pierechod and Lauren Wurzal); BGF – Squire Patton Boggs (Paul Mann, Joshua Lodge and Sarah Hardman).
