Sale to Punch means some personnel need never work again

Pubmaster staff set to share in £37m windfall by The PMA Team

A total of 150 staff at Pubmaster ­ 60% of the HQ workforce in Hartlepool ­ are to share a £37m payout after the company's 3,127 pubs were sold to Punch.

A number of staff will see a £20,000 investment earn a return of £200,000.

The windfall means some rank and file staff need never work again.

Pubmaster's equity was valued at £168m after Punch paid £1.2bn for the company.

Staff own 22% of the company's equity, which means their shares are worth £37m. Pubmaster executive chairman John Sands will see the best pay-day with his 3.5% holding worth about £5.9m. Three other Pubmaster directors hold a combined 3.5% stake and also share £5.9m. A total of 125 staff who joined the share scheme two years ago expect to enjoy the 10-fold return.

A further 25 have been members of the scheme since 1997.

The sale of Pubmaster is a remarkable achievement for Sands.

He was running the pubs belonging to Brent Walker in 1990 when the parent company lost control to the banks.

The pubs were relaunched under the Pubmaster banner in 1991.

Sands stayed in charge and in 1997 successfully lead a management buyout, personally investing £171,000.

Two years later, the company was sold again to West LB with Sands rolling over half his investment.

Of the share payout for staff, Sands said: "We devised something that I believe other businesses should pursue."

Punch is expecting to take control of the estate in early December with Pubmaster's senior management staying for up to six months to ensure a smooth integration.

Pubmaster tenants are promised £15m of investment from Punch in the first year ­ with more to follow.

Sands said: "Punch will try to keep to any commitment that we've made.

I think this is an ideal opportunity for our tenants to be part of a bigger company able to invest more in the estate."

Of his future plans, Sands said he had "a number of options to consider" but, short-term, would focus on the integration of the two estates.

Directors' cut Three Pubmaster directors will earn more than £1m after the Punch sale.

Chief operating officer Ron Turnbull, with 1.5% of the company, picks up about £2.53m. Operations director Richard Gundry and administration director Nigel Sammons, who both hold a 1% stake, receive £1.7m.