UK-based pub operator Young’s has reached an agreement to acquire City Pubs Group for a consideration of approximately £162m ($201m).
According to the agreement reached by the boards of Young’s and City Pubs, Young’s will purchase the entire issued and to be issued ordinary share capital of City Pubs.
Young’s CEO Simon Dodd said: “We are excited to be announcing the proposed acquisition of City Pubs, with the full recommendation of their Board.
“City Pubs is an excellent business we have followed for some time and one which aligns closely with Young’s in terms of both strategy and culture.
“Like us, City Pubs operates premium, individual and well-invested pubs and rooms, with a focus on the highest standards of customer service. Both businesses have performed well in a tough trading environment recently, a testament to the strength of our business models, people and approach to customers.
As per the terms of the deal, City Pub Group investors will receive 108.75p in cash per share and the remainder in Young’s shares.
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According to a report by the Caterer, the deal is expected to increase Young’s managed trading estate by 50 pubs to 279 pubs.
City Pubs executive chairman Clive Watson said: “All at City Pubs can feel very proud of what has been built up over the past 12 years.
“City Pubs was an EIS start-up that began trading in March 2012 and now has an estate of fifty premium pubs in the great cities of Southern England and South Wales.
“Like all hospitality businesses, the pandemic derailed City Pubs’ progress, but it has been able to produce a strong performance since with a more focussed, reshaped business with the lowest debt in its history and a solid strategy in place.”