M&B is looking to acquire the Orchid Group

M&B is looking to acquire the Orchid Group

Mitchells & Butlers has confirmed it is having “exclusive” discussions over acquiring the “majority” of Orchid Group’s pub estate in the UK. 

In a statement to the London Stock Exchange today (29 May), the managed pub operator said discussions with Orchid are “ongoing”.  It added: “There can be no certainty that a transaction will be concluded.” 

According to The Times newspaper, M&B is prepared to pay “more than” GBP250m for around 180 of Orchid’s 220 outlets, having outbid private equity firms Colony Capital and Starwood Capital. 

M&B operates around 1,600 bars and food-led pubs in the UK, under brands including O'Neill's, All Bar One and Nicholson's. In its last set of full-year results, the group reported a 2% rise in sales, while net profits rocketed 92% due to lower costs