A PYMNTS Company

UK: Pub chain to buy larger rival for £1.3B

By  |  July 18, 2019

Stonegate, the owner of British pub chain Slug and Lettuce, announced on Thursday, July 18, that it has agreed to Ei Group, a larger rival, and gain around 4,000 additional pubs, Reuters reported.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The offer of £1.27 billion (US$1.58 billion) represented a 38% premium to Ei’s closing price on Wednesday, and its shares surged almost 40% in morning trade.

    Ei CEO Simon Townsend told Reuters that Stonegate had made an initial unsolicited approach to Ei’s board a few months ago, which was rejected as insufficient and subsequent revisions were also turned down.

    “There came a point where we were able to achieve a price which the board felt was worthy of engagement and has led us to the place where we are today,” Townsend said.

    Currently, Stonegate operates 765 pubs in the UK and will assume debt of £1.7 billion (US$2.1 billion) as part of the deal.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.