Mitchells and Butlers to sell 333 pubs
Mitchells and Butlers has announced plans to sell 333 of its pubs to the Stonegate Pub Company for £373m. The Birmingham-based pub-chain said the move was part of its strategy to withdraw from the “lower price, drinks led market”.
Once the deal has been completed, £500m will have been made from recent non-core disposals.
Following the disposal, Mitchells and Butlers will have 1,580 restaurants and food-led pubs remaining in the UK.
The deal with Stonegate, which is controlled by TDR Capital, is expected to be completed by mid-November this year.
The company announced plans in March to move away from the "drinks-led" market and late night high street bars and venues, focusing instead on the restaurant division of the business.
Earlier this month, the company announced it would sell its Hollywood Bowl division. The company sold the business, worth £27m, to industry leader AMF Bowling.
Commenting on the company’s latest transaction, chairman John Lovering said he was “delighted” with the way the company’s portfolio was being re-shaped.
He said: “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: "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."
