Mitchells & Butlers sells UK pubs for £373 million

UK's leading pub operator Mitchells & Butlers (M&B) has agreed to sell its 333 non-core pubs to Stonegate Pub Company Limited (Stonegate), controlled by private equity firm TDR Capital LLP for £373 million ($578 million) in an all-cash deal.

The sale is in line with the company's strategy to withdraw from the lower price drinks-led market and the late night high street bars and venues as announced in March 2010, and focus on the attractive growth prospects of the informal eating out market, centred on its market-leading brands, M&B said in a statement.

"I am delighted with the progress being made on reshaping Mitchells & Butlers' portfolio in line with the strategy we announced in March.'' M&B chairman John Lovering said.

''The cash resources released by the sale programme will allow the Company to accelerate its growth into the informal eating out market," Lovering further added.

London-based M&B is one of the largest operators within the UK's £70-billion eating and drinking out market. The company's leading brands include Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Sizzling Pub Co, Browns, Miller & Carter, All Bar One, O'Neill's etc.

The 333 pubs marked for sale are located across the UK, which include Scream bars that focus on student market, music bars and late night entertainment venues, unbranded town pubs, community pubs and other small bars.