Tonnant Partners Advises On Significant Hospitality Transaction In Auckland Pub Market

Wellington based corporate advisory firm Tonnant Partners is pleased to announce its role in advising leading hospitality operator Good Spirits Hospitality Limited (NZX: GSH) on the sale of nine pubs in Auckland and Hamilton to Brew on Quay Limited (BOQ).

GSH is one of the largest hospitality groups in the Auckland pub market and owner of iconic venues such as Danny Doolans, The Cav and The Fox.

Following its role in conducting a strategic review in 2022, Tonnant Partners was engaged in late 2022 as advisor to the independent transaction committee of the GSH Board to conduct a sale of GSH’s nine operating venues.

After a lengthy competitive sales process run by a committee of the independent directors of GSH and Tonnant Partners, GSH has entered into a conditional agreement to sell the business and assets of all nine operating venues to BOQ.

The sale of the 9 GSH venues to BOQ will form one of the largest hospitality groups in the Auckland pub market.

Tonnant Partners principal James Gould led the team advising the independent directors of GSH on the transaction.

“We ran a thorough, independent and competitive sale process, and were pleased with the strong interest received from a range of parties including trade buyers and private purchasers. The level of interest reflected the quality of the GSH trading venues, which have been performing well since emerging from Covid in early 2022.”

Gould said that a number of binding offers were received, at valuation levels at the upper end of the expected transaction range.

In selecting BOQ, Tonnant Partners and the independent directors of GSH took into consideration a range of factors including price and transaction certainty, noting the complexity of the transaction including the various third party approvals required to successfully complete the transaction.

Gould said the process was independent, robust and conducted with the cooperation of lender, Pacific Dawn.

The negotiation of the Transaction was complex and conducted at arm's length, with both GSH and BOQ acting in their own interests.

“Complex merger and acquisition deals like this one fit perfectly into our corporate practice,” Gould said. “We’re proud to be involved in a high-profile transaction in New Zealand’s hospitality sector and we look forward to partnering with other companies in the sector going forward.”

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