Pub company Mitchells & Butlers (M&B) has completed the sale of 333 pubs to Stonegate Pub Company, as part of a deal thought to be worth about £373m.
M&B said the move, which was approved by shareholders on 26 October, was in line with its plan to dispose of "non-core" properties in the lower-price, drinks-led market and late-night high-street bars.
The pubs had attributable earnings before interest, tax depreciation and amortisation (EBITDA) and operating profit in the 52 weeks ended 10 April 2010 of £52m and £35m respectively. That means the deal represents an EBITDA multiple of 7.2 on the gross proceeds.
M&B now has around 1,580 restaurants and food-led pubs. Its brands include Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pub Co, Browns, Miller & Carter, Metro Professionals, All Bar One, Nicholson's and O'Neill's.
By Neil Gerrard
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