We created Stonegate Pub Company in 2010 to acquire a portfolio of c. 330 pubs from Mitchells & Butlers. Since then, Stonegate has been transformed into a major UK pub operator in the UK through a series of add-on acquisitions and the transformational acquisition of Ei Group’s estate of 4,000 pubs in 2020.
Initial investment
2010
Sector
Leisure
Initial transaction size
£375m
Following a number of prior investments in the sector, the TDR team recognised that the UK pub sector presented a compelling consolidation opportunity with the potential to create a scaled, drinks-led operator, with significant freehold backing and drive further growth through capital investment.
The acquisition of Ei Group was identified as a transformational opportunity for the original Stonegate platform, combining two complementary estates and providing scope for format conversions across a high-quality property-backed portfolio. Stonegate’s established management team and strong portfolio provided a foundation from which to drive additional growth.
Under TDR’s ownership, Stonegate was established as a leading platform in the UK pub sector, and completed a series of add-on acquisitions that doubled the size of the estate and strengthened its national presence.
The subsequent acquisition of Ei Group created a major opportunity to optimise the combined estate through format conversions and significant refurbishment investment, enhancing the customer proposition and improving returns on capital.