Partly Cloudy

Partly Cloudy

max temp: 12°C

min temp: 9°C

ESTD 1874 Search

Bury St Edmunds: Greene King reported to be in talks with May Capital over sale of 300 pubs

10:50 12 March 2014

The Greene King brewery in Bury St Edmunds.

The Greene King brewery in Bury St Edmunds.

Archant

Pubs and brewing group Greene King today declined to comment on a report that it is in talks over the sale of around 300 pubs to a private equity firm.

shares

Talks between the Bury St Edmunds-based company and May Capital, founded last year by Noah Bulkin, a former merchant banker at Merrill Lynch and Lazard, are said to have reached an advanced stage but now to be “hanging by a thread”.

The story in The Times also links May Capital with the potential purchase of around 50 pubs from R&L Properties, the pub estate of entrepreneur Robert Tchenguiz, although these talks are thought to have broken down.

According to The Times, the Greene King deal could be worth around £85million, although it adds that Greene King chief executive Rooney Anand is “known to drive a hard bargain”.

It also cautions that Greene King is thought to have held advanced talks in relation to the pubs with two other potential purchasers named as private investment firm Cerberus Capital Management, which owns Admiral Taverns, and the Pears property family without a deal being agreed.

A spokesman for Greene King said today: “As always, we don’t comment on speculation.”

At the time of its half-year results in December, Greene King owned a total of 2,226 pubs, restaurants and hotels, including 1,008 within its directly-managed retail division, which includes brands such as Hungry Horse, Old English Inns, Eating Inn and Loch Fyne, and 1,218 under tenancy, lease or franchise agreements within its Pub Partners business.

It is in the fourth year of a five-year plan to build profits by increasing its focus on food-driven pubs, under which it aims to expand its retail portfolio from 888 sites four years ago to 1,100 by 2015, while also improving the quality of the Pub Partners estate by selling sites no longer considered to have a sustainable long-term future.

During the first half, covering the 24 weeks to October 13, it acquiring 14 pubs and exchanged contracts on a further six sites for development while disposing of 59 non-core sites and transferring 11 from tenancy to retail. A further 25 Pub Partners properties were closed and awaiting dispoal at the end of the period.

Related articles

shares

1 comment

  • Greene King selling off their pubs. More "Tesco extra" stores in the pipeline ?

    Report this comment

    The original Victor Meldrew

    Wednesday, March 12, 2014

Steve Magnall, chief executive of St Peter's Brewery.

A former deputy managing director of Greene King’s brewing and brands division has returned to Suffolk as chief executive of St Peter’s Brewery.

Former Autonomy chief executive Mike Lynch.

New details of claims by United States technology giant Hewlett-Packard against former directors of the Cambridge-based Autonomy group, which HP acquired for 11billion US dollars in 2011, have been branded as a “search for a scapegoat”.

Stowmarket High Street

Representatives of a group serving a Suffolk town believe approved plans to build a 29 hectare business site on the edge of the town will address the imbalance of jobs and homes in the community.

Stowmarket High Street

A Suffolk town’s high street is performing better than ever, according to a new report.

The latest Rail Mounted Gantry cranes (RMGs) at the Port of Felixstowe.

Rail freight facilities at the Port of Felixstowe have been expanded further with the commissioning of two new Rail Mounted Gantry cranes (RMGs).

Sainsbury's has announced its first annual profits fall in a decade.

Sainsbury’s today announced its first drop in profits in a decade as it counts the cost of “unprecedented” change in the supermarket industry.

The ISSBA hustings event at Trinity Park, Ipswich.

Business rates, late payment and transport infrastructure were among the issues raised as business leaders from Suffolk were given the chance to question five of the county’s General Election candidates.

Richard Porritt, who has launched a PR firm called it’s RED

An ex-political lobbyist has launched his own PR firm after his seven-year-old daughter persuaded him to quit his London job.

Holiday parks group Park Resorts has announced increated annual sales and profits.

Leading UK holiday centre operator Park Resorts today reported improved annual sales and earnings as a financial restructuring completed in 2013 began to pay off.

Rooney Anand, chief executive of Greene King.

Strong Easter and Valentine’s Day sales have delivered a boost to trading for pubs and brewing group Greene King ahead of its annual results.

Most read

Most commented

Topic pages