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 organic growth initiatives 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 scaled platform in the UK pub sector, and completed a series of add-on acquisitions that expanded 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.