Leading the restructuring of an industry
Stonegate Pub Company
We established Stonegate Pub Company in 2010 to acquire 333 pubs from Mitchells & Butlers plc. Since then, we have more than doubled the size of Stonegate’s estate through a series of acquisitions.
Stonegate Pub Company (“Stonegate”) is the fourth largest managed pub company in the UK, operating around 700 pubs across the country. The Stonegate estate consists of traditional pubs in both high street and suburban locations as well as leading branded bars, including Slug & Lettuce.
From 2007 to 2010, the UK pub sector faced a challenging environment, impacted by both the smoking ban and the financial crisis. Whilst market sentiment towards the sector remained subdued in 2010, we believed there was an attractive opportunity to invest and take a leading role in restructuring the industry.
We established Stonegate in 2010 to acquire 333 pubs from Mitchells & Butlers plc. This transaction served as the platform from which we have created one of the leading managed pub companies in the UK.
What we've done
At acquisition, we established an interim head office to run the pubs acquired from Mitchells & Butlers plc.
The initial Stonegate platform has grown substantially through a series of add-on transactions, including Town & City Pub Company in 2011, selected assets from Living Room and Bramwell Pub Company in 2013, Maclay Inns in 2015, and most recently Tattershall Castle Group, Intertain (Walkabout Bars) and selected assets from J.D. Wetherspoons in 2016.
We have supported management in integrating these add-on acquisitions, and have helped management to drive performance through a number of operational initiatives and refurbishment programmes across the estate.
Date of investment: November 2010
Deal type: Private sale
Status: Partially realised