Young’s acquires Redcomb Pubs for £34m
Redcomb sites
- Boat House, Instow, Devon
- Carnavon Arms, Highclere, Hampshire
- Manor Arms, Streatham, south London
- Seagate, Appledore (including 18 The Quay), Devon
- Theodore Bullfrog, Charing Cross (part freehold/part leasehold), central London
- Village Inn, Ealing, west London
- Alphabet, Islington, north London
- Bickley, Chislehurst, south-east London
- Cherry Tree, East Dulwich, south-east London
- Coach & Horses, Greenwich Market, south London
- Lockhouse, Paddington Basin, west London
- Old Shades, Whitehall, central London
- Old Manor, Potters Bar, Hertfordshire
- Station Hotel, Hither Green, south-east London
- Worplesdon Place, Guildford, Surrey
Multi-site operator Redcomb, founded by managing directors Dan Shotton and Mark Draper in 2010, has been sold to Young’s on a cash-free and debt-free basis in a deal that will increase the latter’s portfolio of managed houses to 200.
Figures reported in October 2018 revealed that Redcomb’s turnover reached £16.7m for the year ending 30 June, representing a 10.6% increase year-on-year, with profits rising by 11.9%.
Alignment and synergy
Redcomb’s Dan Shotton commented: “Our journey from single site in 2010 to the 15 pubs and bars you see today has been an incredibly exciting and rewarding one.
“We’ve always had a real passion for creating great pubs and have been lucky enough to have built an amazing team around us who share our passion and have helped us grow.
“Through this acquisition we are confident that the estate will continue to go from strength to strength, benefiting from its alignment and synergy with the ethos at Young’s.”
Vibrant and exciting sector
Mark Draper added: “We’ve always challenged ourselves to create premium pubs that we’d be proud to visit ourselves, it has been the very bedrock of our business.
“Our thanks go to the entire team and all our suppliers in helping us make Redcomb such a success.
“In our opinion, the pub sector remains a vibrant and exciting space to conduct business, and still, if done correctly, has a valued place in the hearts and minds of the great British public.
“Both Dan and I have pubs in our blood.
“Where that takes us next marks an exciting new chapter that we can’t wait to build upon.”
Continued growth
Discussing the acquisition, Young’s chief executive Patrick Dardis commented: “The team at Redcomb has created an outstanding, well-invested estate of pubs, which we are delighted to add to the Young’s fold.
“The acquisition of these pubs represents an excellent opportunity to continue the growth of the Young’s managed estate.
“They fit very well with our expansion strategy which is focused on high quality managed houses.”
A spokesperson for Young’s added: “The business currently generates run-rate EBITDA (earnings before interest, taxation, depreciation and amortisation) of approximately £4.
“Investment in the pubs is planned over the next two years, which will naturally have a short-term impact on profitability but should have a positive impact thereafter.
“Therefore, in the first full year of ownership, the pubs are expected to trade at the current run-rate, subject to the impact of any investments undertaken.
“The pubs will complement the Young’s managed house estate both in and around London, build upon a growing presence in the south-west and further enhance the Young’s brand.
“Each of the pubs has a premium offering and distinctive personality that differentiates it in its local market.
“As a result of the transaction, the Young’s managed estate has increased by 8% from 185 to 200.
“With 70 tenanted pubs in its Ram Pub Company, the total Young’s pub estate will increase to 270 pubs.”
To find out more about pubs for sale, lease and tenancy visit our property site.
