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Coles joins joint venture to comply with Qld liquor laws
Allens has advised global investment firm KKR and Australian Venue Co. on the establishment of a joint venture with Coles Group.
Grace Ormsby
Firm: Allens (KKR, Australian Venue Co.)
Value: $200 million
Area: Corporate, M&A
Key players: Allens’ lead partner on the deal was Emin Altiparmak. Partner Robert Simkiss, senior associate Joshua Hoare, and lawyers Ari Bendet and Tess Kirkinis were also involved.
A number of specialists from the firm also assisted: partners Craig Milner, Simon Dewberry and Sarah Matheson, managing associates Annabelle Aland and Andrew Stirling, senior associate Stephanie Burn, and associate Nick Li.
Deal significance: Australian Venue Co. is the portfolio company of KKR. The company, established in 2003, operates a diverse portfolio of unique and high-end hotels, pubs, bars, restaurants and function spaces, Allens outlined.
Queensland Venue Co. is the incorporated joint venture of KKR with Australian Venue CO. and Coles Group.
Under the joint venture, Australian Venue Co. will operate and receive the economic benefit of the 87 hotels and pubs owned by Queensland Venture Co.
Coles will continue to operate and receive the economic benefit of the retail liquor outlets owned by Queensland Venture Co., which comprises 253 outlets under the Liquorland, First Choice and Vintage Cellars banners, Allens said.
According to the firm, the joint venture will allow Australian Venture Co. and Coles to focus on their respective core competencies while complying with Queensland’s liquor and gaming laws, which require the same licensee to own and operate both the hotels and pubs and the retail liquor outlets.
Australian Venue Co. will pay Coles for a stake in the joint venture.
“The joint venture demonstrates how private equity sponsors can develop unique bolt-on opportunities for their portfolio companies,” lead partner Emin Altiparmak commented.
“In this case, the joint venture is also transformational for AVC, more than doubling its existing portfolio of venues,” he continued.
“We are proud to have again advised AVC on its ongoing significant expansion, further to numerous other bolt-on acquisitions in recent years.”
