M&B in exclusive talks to buy 175 Orchid pubs

By James Wallin contact

- Last updated on GMT

Related tags: Orchid group, Orchidaceae, St albans, Investment

M&B has confirmed it is in talks to buy the bulk of Orchid pubs
M&B has confirmed it is in talks to buy the bulk of Orchid pubs
Mitchells & Butlers (M&B) has confirmed that it has in exclusive talks to buy the majority of the Orchid estate – with the rest to be placed in administration.

According to the Publican’s Morning Advertiser​’s sister title M&C Report​, M&B moved ahead of private equity competition with a bid of c£265m.

The Alistair Darby-led operator is believed to have beaten off competition from Starwood Capital and Colony Capital to acquire c175 of Orchid’s best performing sites.

In a statement released this morning, M&B said it “notes the recent press speculation regarding the Orchid Group”.

“Mitchells & Butlers confirms that it has entered into exclusive discussions regarding the potential acquisition of the majority of the Orchid estate.

“Discussions are ongoing and there can be no certainty that a transaction will be concluded.

“A further announcement will be made in due course as appropriate.”

It is understood that the remaining c60 sites will be placed in administration with Ernst & Young, while M&B will dispense with Orchid’s head office led by Rufus Hall in St Albans, saving c£8m.

Last Friday, Greene King announced it had pulled out of the sale process for Orchid, saying the transaction did not meet its "strict acquisition criteria”.

Related topics: Mitchells & Butlers

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