FDBusiness.com

Mitchells & Butlers announces the proposed disposal of 333 Non-Core Pubs for a cash consideration of £373m to Stonegate Pub Company Limited

 Breaking News
  • UK Supermarkets Sweep Up 17 Months of Growth UK supermarket sales have increased in value by 3.1% compared with last year according to the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 8 October 2017. This marks the 17th period of growth in a row for Britain’s grocers. Like-for-like grocery inflation remains at 3.2% but consumers could be [...]...
  • Hilton Food Group to Expand to New Zealand Hilton Food Group, the UK-based specialist international meat packing business, is to proceed with plans to expand its packing capability to New Zealand. Hilton will construct a new meat processing facility in Auckland and supply Progressive Enterprises, New Zealand’s leading retailer, trading as Countdown Supermarkets. As Progressive Enterprises is also part of the Woolworths business, [...]...
  • From Measurement Data to Smart Actions Energy and process industry monitoring and control systems contain a lot of data, which is not always fully utilised. Data is also collected in different systems, which further hampers comprehensive overall management. The efficient use of measurement data is increasingly becoming a crucial factor in gaining a competitive advantage. Elomatic’s FORMIOT data analysis service offers support [...]...
  • Rocla’s Automation Solution Maximizes Storage Capacity and Saves Money Operations at Valio’s new whey powder factory started gradually in Autumn 2014. The main goal was to build a fully automated warehouse. Valio also needed to maximize the storage capacity in this space, and to be able to adjust the temperature and air humidity. At the warehouse there are 3 Rocla’s automated guided vehicles (AGVs) [...]...
  • Packaging Automation Helps Chicory Crops to Grow As a growing business Packaging Automation know how important it is to keep cash within the business and how hard it is to acquire the machines and equipment you need to grow. Packaging Automation want to help businesses to grow, adapt and keep up with what can be frighteningly fast paced growth without tying up [...]...

Mitchells & Butlers announces the proposed disposal of 333 Non-Core Pubs for a cash consideration of £373m to Stonegate Pub Company Limited

Mitchells & Butlers announces the proposed disposal of 333 Non-Core Pubs for a cash consideration of £373m to Stonegate Pub Company Limited
August 23
13:46 2010

Mitchells & Butlers announces the proposed disposal of 333 Non-Core Pubs for a cash consideration of £373m to Stonegate Pub Company Limited, a company controlled by TDR Capital LLP. 

The disposal is in line with Mitchells & Butlers’ strategy to withdraw from the lower price, drinks-led market and the late night high street bars and venues as announced in March 2010. On completion, £500m will have been realised from recent non-core disposals. The pubs had attributable EBITDA and operating profit in the 52 weeks ended 10 April 2010 of £52m and £35m respectively.  This represents an EBITDA multiple of 7.2x on the gross proceeds. 20% of the pubs are short leasehold generating £8m of EBITDA and £2m of operating profit in the 52 weeks ended 10 April 2010. In the next phase of the Company’s stated strategy, the Board intends to reinvest the proceeds into growth opportunities offered in the informal eating out market where the Company’s market leading brands deliver attractive growth prospects.

Following the disposal, Mitchells & Butlers will have 1,580 restaurants and food-led pubs with higher growth potential.  Each year since 2007 this core business has grown like-for-like sales by around 1 percentage point more than the historically reported Mitchells & Butlers’ results whilst operating profit per pub has increased by 3% per annum. Including the gross proceeds from all the non-core disposals, net debt at 10 April 2010 would have been £2,013m, comprising £2,303m of securitised long term debt and £290m of cash. Completion of the disposal of 333 Non-Core Pubs is scheduled to occur by mid November 2010 and is conditional on the approval of the Company’s shareholders.  A circular providing further detail of the disposal will be posted to shareholders in due course.

Commenting on the transaction, John Lovering, Chairman, commented: “I am delighted with the progress being made on reshaping Mitchells & Butlers’ portfolio in line with the strategy we announced in March.  Adam Fowle and the new management team are making excellent progress in accelerating the pace of change throughout the organisation.  The cash resources released by the sale programme will allow the Company to accelerate its growth into the informal eating out market.”

Adam Fowle, Chief Executive, said: “We are pleased that we have been able to announce the exit from our price sensitive drinks-led pubs and our late night venues in a single transaction.  This disposal, when combined with the sale of our lodge and bowling businesses, completes the first stage of our strategy.  This will now enable us to reinvest in the informal eating out market where our market leading brands, corporate scale and operational capability will deliver attractive growth and investment returns for our shareholders.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 19, 2017PMA Fresh Summit 2017
  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements