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UK hospitality M&A activity slows down

16 September 2008

The level of mergers and acquisitions (M&A) in the UK hospitality sector fell in both volume and value in the first half of 2008, research revealed today.

The Deal Drivers UK study, by consultancy PKF showed that M&A activity in the sector was 90% down in value and 25% down in volume, compared to the first half of 2007.

The larger share of transactions occurred in the first quarter of 2008, with 23 deals worth £806m, while in the second quarter there were 17 transactions worth £179m.

The largest deal completed in the first half of the year was the £345m management buyout of Pret a Manger, backed by UK private equity firm Bridgepoint Capital.

The report also details the private equity buyouts that took place in the first half of 2008.

These included Yo! Sushi, which was acquired in a £51m management buyout supported by Quilvest SA in March, and Alan Yau's two London restaurants, Hakkasan and Yauatcha, which were purchased through a £31m MBO by Tasameem, the Bahrainian property fund of Abu Dhabi Investment Authority, in January.

UK hotel property prices could fall by as much as 20%>>

PKF monthly hotel performance update - Industry data>>

Alan Yau sells both Michelin-starred restaurants, reports claim>>

Pret A Manger sold for £345m to private equity firm>>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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