Stonegate eyes Barracuda Pub Co
It is thought that Stonegate is one of a number of parties, including private equity groups, which have shown an interest in the operator of the Smith & Jones chain.
Last month, Barracuda, which is led by Mark McQuater, appointed dis-posals advisory specialist McQueen to seek up to £200m of new investment to help it expand its estate. Consolidation opportunities are also thought to have been explored, including a sale to an industry rival.
In 2009, Barracuda completed a restructuring of its debt, which saw its banking partners undertake a debt-for-equity swap, assuming a significant stake in the business. The amount of debt in place at Barracuda was reduced by £84m to £163m.
The company recently announced it would be concentrating on its two core brands going forward: Smith & Jones and the student- friendly Varsity.
A successful deal for Barracuda would take the 552-strong Stonegate, which is led by Ian Payne, to around 750 managed sites. That size of estate would place it as a serious rival to JD Wetherspoon in terms of high-street presence.
Stonegate completed the acquisition of 333 Mitchells & Butlers wet-led pubs last year, and in June this year merged with Yates’s and Slug & Lettuce operator Town & City to create a 552-strong managed company.
