Slug and Lettuce owner to buy chain with 8 pubs and restaurants in Portsmouth area
The company behind Slug and Lettuce, Walkabout and Yates has snapped up a chain with eight pubs and restaurants across the Portsmouth area.
EIG - formerly known as Enterprise Inns - has 4,000 pubs and properties across the country and Stonegate have made a move to purchase it for £1.28 billion.
The company has a number of pubs and restaurants across the Solent region including:
- Compass Rose, Anchorage Park, Portsmouth
- Italian Bar and Grill, Great Southsea Street, Southsea,
- Milton Arms, Milton Road, Southsea
- Old House at Home, Locksway Road, Southsea
- Glencoe, San Diego Road, Gosport
- Fareham, Trinity Street, Fareham
- Queens Head, Titchfield High Street, Fareham
- Olive Leaf, Sea Front, Hayling Island
In a statement after announcing the deal, Stonegate said: ‘With greater scale and diversification, Stonegate believes that the combined group will be better positioned to compete effectively in what is expected to be a challenging operating environment for the foreseeable future.’
Stonegate was set up by TDR Capital in 2010 as a vehicle to buy 333 pubs from Mitchells and Butlers.
The company has subsequently spent £350 million on expansions and now has more than 765 sites following 11 acquisitions in the last nine years.
Ian Payne, chairman of Stonegate, said: ‘We look forward to working with EIG and its publicans to support future growth and create stronger pubs at the heart of communities across the UK.’
Robert Walker, chairman of EIG, added: ‘The commercial benefits of combining the companies are compelling.
‘Stonegate is committed to continuing to invest in the business for the future benefit of the combined business, tenants and employees. The EIG board believes that this is a combination it can recommend with confidence to shareholders and stakeholders alike.’
The deal is set to be put to a vote of EIG shareholders, but is unlikely to face any opposition, with the board recommending the deal.
It is the latest in a long line of deals and bids by private equity firms, who are keen to buy out publicly-listed companies.
According to Bloomberg, there were more private equity buyouts in June of listed firms than any month for more than a decade.