PUBCO Mitchells and Butlers has bought the Ha Ha Bar and Grill chain from the Bay Restaurant Group, it announced today.
The deal was for a gross cash consideration of £19.5m, said M&B, whose headquarters are in central Birmingham.
The transaction will be completed on October 3, after which the 22 leasehold sites acquired will be converted into 12 of M&B’s ‘All Bar One’ pubs and six Browns restaurants.
The remaining four will operate as other M&B brands.
The company said it expected the transaction to have an EBITDA return of approximately 25% following incremental capital expenditure of £8.5m.
M&B chief executive Adam Fowle said: “Whilst small, this acquisition illustrates our ability and our strategy to develop sites to create value for Mitchells & Butlers shareholders.
“It will also provide an excellent opportunity to grow significantly two strong brands, All Bar One and Browns.”
The 22 Ha Ha sites are spread across England and Wales including in Birmingham, Nottingham, Cheltenham Leeds and Cardiff.
This latest deal comes in what has been an extremely busy year for the pub chain.
Click on the headlines to read about some of M&Bs’ other deals this year:
