Yates finds synergies in possible SFI deal

Yates Group will ditch the Litten Tree and Bar Med brands and close SFI Group's Surrey headquarters if it succeeds with its takeover of the struggling pub company.
On Friday (18 March) Yates, owned by GI Partners, tabled a bid for SFI thought to be worth between £60m and £75m.
Yates believes its reputation as a consolidator puts it in a strong position, as does the fact that SFI's bars are leased, like its own.
If the bid is accepted, one of Yates's first moves will be to shut SFI's Woking headquarters, which costs £8m annually, and relocate operations to its head office in Bolton, Lancashire.
A senior insider at the company said SFI's Slug & Lettuce brand was the jewel in the 150-plus crown and would complement its Ha!Ha! Bar & Canteen brand, which is also heavily food-led.
Other SFI brands would probably be converted to Yates bars in a deal that would effectively double the size of the group.
Property investor Robert Tchenguiz, who beat Yates in the battle for Laurel Pub Company's high-street estate in December 2004, has also been linked to a bid.
Kroll Corporate Finance, which was brought in by SFI in January to maximise shareholder value, confirmed it had received offers from trade-and-equity company buyers.