M&B buys Ha Ha Bar & Grill for £19.5m

By The PMA Team

- Last updated on GMT

Related tags Ha ha bar Restaurant Mitchells & butlers

Fowle: welcomes acquisition
Fowle: welcomes acquisition
Mitchells & Butlers (M&B) has bought the Ha Ha Bar & Grill brand from Bay Restaurant Group for £19.5m.

Mitchells & Butlers (M&B) has bought the Ha Ha Bar & Grill brand from Bay Restaurant Group for £19.5m.

After completion of the transaction on 3 October 2010, the 22 leasehold sites being acquired will be converted in due course into twelve All Bar One sites and six Browns restaurants with the remaining four operating as other M&B brands.

The company expects the transaction to have an EBITDA return of approximately 25% following incremental capital expenditure of £8.5m.

Chief executive Adam Fowle said: "Whilst small, this acquisition illustrates our ability and our strategy to develop sites to create value for Mitchells & Butlers shareholders.

"It will also provide an excellent opportunity to grow significantly two strong brands, All Bar One and Browns."

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 topics Mitchells & Butlers

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