Mitchells & Butlers to sell over 300 pubs for an estimated £373m

20th August 2010, 11:51am

Pubco Mitchells & Butlers has announced the proposed disposal of 333 pubs for a cash sum of £373m, as the pub business looks to “withdraw from the lower price market”.

The move is in line with its strategy, made public back in March, which stipulated that food is now the future of the M&B business.

Money from the sale, which M&B hope to complete by November, will be reinvested to drive food-led sites forward and deliver "deliver attractive growth prospects".

Today's announcement also comes after news earlier this month that the company has sold its Hollywood Bowl business for £39m to rival AMF Bowling.

John Lovering, chairman, said the sale is crucial to moving the business on: "I am delighted with the progress being made on reshaping Mitchells & Butlers' portfolio in line with the strategy we announced in March. The cash resources released by the sale programme will allow the Company to accelerate its growth into the informal eating out market."

Adam Fowle, chief executive, added: "We are pleased that we have been able to announce the exit from our price sensitive drinks-led pubs and our late night venues in a single transaction.

"This disposal, when combined with the sale of our lodge and bowling businesses, completes the first stage of our strategy. This will now enable us to reinvest in the informal eating out market where our market leading brands, corporate scale and operational capability will deliver attractive growth and investment returns for our shareholders."

Related Articles:

• 24 Jan 2011 - M&B's John Lovering to step down as chairman
• 23 Nov 2010 - Mitchells & Butlers profits soar by 26% as food sales increase
• 16 Aug 2010 - Pub and restaurant chains achieve sales growth in July
• 10 Aug 2010 - Mitchells & Butlers pub group sells Hollywood Bowl for £39m
• 22 Jul 2010 - World Cup has “negative impact” on food sales at M&B
• 21 Jul 2010 - Mitchells & Butlers continue to reposition with disposal of 52 lodges
• 16 Jul 2010 - Travelodge bolsters aggressive growth plans – by acquiring 52 Mitchell and Butler pub group Innkeeper Lodges
• 30 Jun 2010 - New finance director at Mitchells & Butlers pub group
• 19 May 2010 - Mitchells & Butlers pub group reports strong trading
• 24 Mar 2010 - Mitchells & Butlers to reposition food-led pub businesses

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