Redcomb Pubs has announced the sale of the group to operator Young’s Brewery for £34m on a cash-free and debt-free basis.
The deal represents a multiple of 8.5 times EBITDA for the brand’s portfolio of 15 pubs and bars across London, the home counties and the south-west, bringing Young’s total to 200 sites. The acquisition has been funded through existing debt facilities through Barclays and HSBC.
It comes after a strong year of trading for many wet-led offerings. Started in 2010, Redcomb’s most recent figures posted in October 2018 showed turnover of £16.7m for the year ending 30 June 2018, with profits rising by 11.9%.
Redcomb’s managing director Dan Shotton said: “Our journey from a single site in 2010 to the 15 pubs and bars you see today has been an incredibly exciting and rewarding one. We’ve always had a real passion for creating great pubs and have been lucky enough to have built an amazing team around us who share our passion and have helped us grow.
“Through this acquisition we are confident that the estate will continue to go from strength to strength, benefitting from its alignment and synergy with the ethos at Young’s.”
Patrick Dardis, chief executive of Young’s, added: “The team at Redcomb has created an outstanding, well-invested estate of pubs, which we are delighted to add to the Young’s fold.
“The acquisition of these pubs represents an excellent opportunity to continue the growth of the Young’s managed estate. They fit very well with our expansion strategy which is focused on high-quality managed houses.”