Geronimo seeks review of business as prelude to £30m sale of boutique pubs

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The Independent Online

The private equity owner of boutique pub company Geronimo Inns has hired big four accountant PricewaterhouseCoopers to review the business ahead of a possible sale.

Penta Capital, which bought into the 28-strong pub chain in 2006, has asked PwC to look at a range of options, including the sale of a smaller stake. The chain needs to raise cash to buy several new sites.

A spokeswoman for Geronimo tried to play down the likelihood of a sale, insisting that PwC had simply been asked to look at "some pub acquisitions" and was examining "a whole range" of options to raise finance. However, more senior sources close to the company and its owner confirmed that the move was likely to result in a sale. "It is a strategic review and a sale is definitely an option," said one.

The London-based pubs have traded well through the recession and a leisure banker suggested that £30m might be a reasonable price.