CVC Capital acquires 45pc stake in pub owner Australian Venue Co from PAG

A fund managed by Luxembourg-based CVC Capital Partners has acquired a 45 per cent stake in Australian Venue Co (AVC), one of the country's largest owners of pubs, bars and hotels, bringing fresh capital to grow its 243-venue portfolio.

The new capital partnership comes within two years of Hong Kong-based PAG acquiring a majority stake in AVC from New York-headquartered KKR, in a deal understood to have been worth more than $1.4 billion at the time.

AVC has not disclosed the sum paid by CVC Capital Partners Asia VI to become a capital partner, but sources close to the deal indicated a group valuation of approximately $2.1 billion.

As part of the agreement, CVC and PAG will each own 45 per cent of the company, which has increased its net location footprint by more than 30 venues over the past two years.

AVC chief executive Paul Waterson says the deal will allow the company to access additional funding needed to support the company in its ambitious growth plans.

"The combination of CVC and PAG as owners will allow the company to meet its growth strategies to revamp existing premises and deliver better customer experience while also funding new opportunities in major population centres," Waterson says.

CVC Australia head Richard Blackburn says the group is excited to be partnering with a "truly exceptional management team" and PAG to support the next phase of growth for AVC.

"We have long admired AVC and viewed it as best in class both in terms of its customer offering and operations," Blackburn says.

PAG managing director Sid Khotkar describes the new partnership as a great result for both private equity firms and the AVC business.

"We work to invest in strong businesses in Australia and help make them even stronger. This agreement is a testament to that approach and to AVC’s great success," he says.

"We are happy to partner with CVC on this next exciting phase for Paul and the team."

CVC Capital Partners emphasises it has no association or affiliation with the Australian venture capital and private equity firm, CVC Limited.