Young’s has agreed to buy rival City Pub Group in a £162 million deal and the investors at the London based pub group will receive 108.75p per share including the remaining shares of Young’s in the deal.
The deal will bring 50 more pubs to Young’s portfolio bringing the total estate to 279 pubs.
Young’s will now become one of the largest pub operators across London and the South East and they will seek to benefit from “synergies” from the deal with jobs overlapping.
Young’s chief executive Simon Dodds said: “City Pubs is an excellent business we have followed for some time, and one which aligns closely with Young’s in terms of both strategy and culture.
“Both businesses have performed well in a tough trading environment recently, testament to the strength of our business models, people and approach to customers.”
The current executive chairman Clive Watson, of City Pub Group said, “Mindful of the uncertain economic climate, high interest rates and inflation in particular, and our plans for long-term growth as an independent company, initial approaches were rejected.
“However, following careful consideration, we believe the transaction is in the best interests of City Pubs shareholders with the ability to realise 75% of the equity in cash at a material premium to the current share price together with a stake in the future upside.
“The board believes the transaction significantly accelerates the value that could be realised in the short term by City Pubs if it were to remain independent.”
