$1.6 Billion Merger to Create UK’s Single Largest Pub Operator

The_Slug__Lettuce_Upper_Street_Islington1

London-based Stonegate Pub Co., which operates 765 pubs, is buying the much larger Ei Group in a deal valued at £1.27 billion (US $1.58 billion).

Ei, formerly known as Enterprise Inns, operates and leases about 4,000 pubs, often in partnership with landlords and small operators who tailor their menus and entertainment to cater to local customers.

English pub

If finalized as expected by January 2020, the deal will make Stonegate the single largest pub operator in the U.K.

Stonegate, owned by private equity fund TDR, operates managed pubs under brands including Slug and Lettuce, Walkabout and Yates. It has grown through a series of acquisitions since it was founded in 2010 with the purchase of 333 pubs from Mitchells & Butlers for £373 million.

Britain’s pubs have been closing at an average of 15 locations a week as operators battle the cost of higher minimum wages as well as a move away from pub drinking by younger Britons.

RELATED CONTENT

Velvet Taco 1200x800 1

Private Equity Firm Acquires Majority Stake in Velvet Taco

The private equity firm Leonard Green & Partners has purchased a majority stake in the Dallas-based restaurant concept Velvet Taco.

Vulcan chefs 1200x800 1

Vulcan Adds Two Chefs To Help Establish New Center of Excellence

Chef Pete Schellenbach and Chef Hank Sawtelle will serve as culinary specialists and help establish Vulcan's new Center of Excellence, which will begin opening next year.

- Advertisement -

- Advertisement -

- Advertisement -

TRENDING NOW

- Advertisement -

- Advertisement -