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

 Breaking News
  • New Head For Arla Foods UK Arla Foods, the leading European dairy co-operative, has announced the departure of its UK Managing Director, Tomas Pietrangeli, who is leaving the company to become CEO of Danish retail group Dagrofa. Pietrangeli will be replaced by Ash Amirahmadi, who is currently SVP – Sales for Arla Foods in the UK. Tomas Pietrangeli will leave on 30 June [...]...
  • HKScan Invests in its Kristianstad Plant in Sweden HKScan, the Nordic meat and food group, is investing close to €7 million in its Kristianstad plant in Sweden. This is one of the steps in HKScan’s strategic development of the entire value chain, from farm to fork. The investment further modernizes Sweden’s largest pig slaughterhouse and strengthens thereby further HKScan’s operational footprint. “HKScan’s investment increases [...]...
  • Craft Beer Revolution is Here to Stay Royal DSM, a global science-based company active in health, nutrition, and materials, has published a new report in its Global Insights Series which indicates the consumer demand for craft beer is not likely to slow down anytime soon. The report, which surveyed 3,300 consumers in seven countries in the Europe and US, shows that 4 [...]...
  • DeutscheBack Reduces Acrylamide in Bakery Products With Innovase ASP DP, DeutscheBack now offers manufacturers of bakery products an enzyme system that prevents the formation of acrylamide in baked goods such as biscuits, wafers, bread and rolls. A simple dosing makes the new solution easier for bakers to use than enzyme concentrates and enables adherence to the statutory tolerances for acrylamide without [...]...
  • AllinAll Ingredients Officially Opens New €5 Million Facility in Dublin An Taoiseach Leo Varadkar, TD (pictured above left), has officially opened AllinAll Ingredient’s new state-of-the-art manufacturing and Research and Development facility in Rosemount, Dublin. The company, which has been in the food industry for over 20 years, develops and manufactures ingredients, sauces and blends for the processed food market. Its R&D lead team have developed [...]...

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



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2018Packaged., The 7th Global Summit
  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here