M&B in advanced talks to buy southern rival’s estate
MITCHELLS & Butlers has confirmed that it is in talks regarding the potential acquisition of the bulk of a southern rival’s estate.
The Birmingham pubco said in a statement released to the London Stock Exchange yesterday that it has entered into exclusive discussions regarding the potential acquisition of the majority of the Orchid Group estate.
Jewellery Quarter-based M&B said it was responding to press speculation.
“Discussions are ongoing and there can be no certainty that a transaction will be concluded,” it said
“A further announcement will be made in due course as appropriate.”
A report in the national press suggested M&B, which runs chains such as Harvester, All Bar One and O’Neill’s, would pay in the region of £266m for up to 180 of Orchid’s 220-strong estate, with the remaining 40 pubs expected to enter administration.
Orchid Group is headquartered in St Albans. Established in 2006 it operates pubs, bars and restaurants around the UK under brands such as Great British Carvery, Do Drop Inns and Fuzzy Ed’s.
It has been owned by the real estate arm of Deutsche Bank since 2012 following a restructure which saw the exit of previous owner, private equity firm GI Partners.
