Bay Restaurant Group sells ha ha bar & grill to Mitchells and Butlers for £20m

17th September 2010, 8:56am

Bay Restaurant Group has sold its ha ha bar & grill brand to pub group Mitchells and Butlers (M&B) in a deal said to be worth almost £20 million.

A total of 22 leasehold restaurants will be handed over when the transaction completes on 3rd October.

The sale signals M&B's commitment to realigning its business and focusing more on its food offering.

Bay Restaurant Group said the sale will allow the business to be solely focused on La Tasca, comprising 70 Spanish tapas restaurants.

It is anticipated that some of the proceeds from the disposal will be reinvested in the La Tasca business as Bay embarks on a two-year investment programme in the brand.

Slug and Lettuce (82 sites) was transferred from Bay into Town & City Pub Company in February this year, which the company said was a "logical move".

Ian Payne, chairman of Bay Restaurant Company, said: "The sale of ha ha follows a successful and active auction process which we launched in April of this year. As anticipated, there was significant interest in the ha ha brand portfolio and I am delighted to see both the business and all of its employees going to such a good home within the Mitchells and Butlers stable where I have every confidence it will flourish.

"I am pleased that we have successfully achieved an attractive offer for the business which creates value for our shareholders."

Related Articles:

• 23 Nov 2010 - Mitchells & Butlers profits soar by 26% as food sales increase
• 24 Sep 2010 - Enotria launches wine course for front of house and bar staff

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