Tchenguiz buys Yates for £202m

by The PMA Team

Property tycoon Robert Tchen-guiz has bought Yates for £202m from GI Partners, the US private-equity firm.

Tchenguiz will merge Yates with his existing high-street pub company, Laurel, which he bought last December for £151m, to create a company with 320 sites.

Tchenguiz wants to own 1,000 managed pubs and is also bidding for Slug & Lettuce operator SFI, Spirit's high-street pubs and Barracuda.

He said: "The combined company has very strong freehold asset backing, combined with strong cash flow and operating performance.

"Together with management and our financing partners, we look forward to continuing to build this business in the future.

"In December 2004, we initiated a strategy of building the best high-street pub company, and with this acquisition, we've taken the company to a new level."

Tchenguiz claimed at the weekend that he was confident of outbidding rivals to win the various pub auctions under way at the moment.

The new enlarged business will be run by Laurel chief executive Julian Sargeson, who said: "The quality of the business and the prime locations in which they are situated, coupled with the calibre of the people, confirms my belief that we will be the premier' operator in the high street. It is our clear intention to build on the strengths of the combined Laurel and Yates operations."

Laurel currently has its headquarters in Luton, while Yates is based in Bolton. Sargeson added: "We are proposing to close Bolton following a period of consultation."

Mark Jones, chief executive officer of Yates Group, has now left the business.