Young's completes City Pub Group acquisition
Following the acquirement, Young’s has added 51 of Cambridge-based City Pub Co’s predominantly freehold and “well-invested” wet-led pubs to his portfolio.
The south-east London-based pub operator and brewer, which has an estate of more than 200 pubs, said the scheme of arrangement would become effective immediately.
It added the procurement would “significantly strengthen” Young’s presence in London and open up new areas, such as Cambridge and Norwich, for the business, providing a platform to “continue to accelerate its growth strategy”.
Similar culture
Young’s chief executive officer Simon Dodd said: “City Pubs Group is a business we have admired for some time, and we are delighted to welcome our new team to the Young’s Group.
“City Pubs brings a portfolio of predominantly freehold pubs which are closely aligned with our estate and have a strategy of operating premium, individual and differentiated pubs and bedrooms.
“Sharing a similar culture, its team delivers a quality offering and the highest standard of customer service to their communities.”
Young’s first agreed on the terms of a recommended cash and share acquisition in November last year.
Working together
Under the agreement, shareholders were entitled to 108.75p in cash and 0.032658 of a new Young’s A Shares for each City Pubs share, which meant an approximate value for City Pubs of £162m.
In its latest trading update, the group reported total managed revenue for the five-week festive period to 1 January 2024 up 9% with like-for-like sales also up 7.2%.
Furthermore, total managed revenue for Young’s increased by 6.9% and 4.7% on a like-for-like basis for the 13 weeks ending 1 January.
Dodd added: “We look forward to working together and continuing to invest in the group’s enlarged estate to create value for all our loyal customers and wider stakeholders.”
