M&B sells Hollywood Bowl for £39m
Mitchells & Butlers (M&B) has continued its sale of non-core assets with the disposal of its Hollywood Bowl chain for £39m.
Rival chain AMF Bowling has bought the 24 sites to add to its existing stable of 33 bowling centres.
The sale follows M&B's recent deals to offload its 52 lodges for £88m and 15 of its franchised pubs for around £15m.
It is expected to help M&B accelerate its plan to grow food-led brands including Crown Carveries, Harvester and Toby Carvery.
Adam Fowle, chief executive of M&B, said: "This further disposal of non-core assets is another important step towards focusing the business on our market leading growth brands."
The speed of completion of these deals over a four-week period and the total price achieved of £140m have impressed the City and the next assets on the block are around 300 wet-led pubs that are forecast to bring in proceeds of between £300m and £400m.
In a note, broker Panmure Gordon suggests the money raised from these pubs will allow M&B to reinstate its dividend to shareholders as well as provide the capital needed to deliver on the group's aggressive plans to grow its food led brands.
