Young’s, a pub operator based in the UK, has finalized a deal to purchase City Pubs Group for an estimated sum of around £162 million ($201 million).
As per the mutually agreed upon terms by the boards of Young’s and City Pubs, Young’s will acquire the complete 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.”
Under the terms of the agreement, investors of City Pub Group will receive 108.75p in cash per share, with the remaining portion paid in Young’s shares.
As reported by the Caterer, the agreement is anticipated to expand Young’s managed trading estate by adding 50 pubs, bringing the total 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.”
