Young’s explores tenanted estate sale
The tenanted arm of Young’s, known as the Ram Pub Company, comprises just over 50 pubs, and accounts for 5% of total revenue. Its managed pubs division comprises in the region of 200 sites.
The pub company made the statement to the London Stock Exchange following a report by Sky News explaining that it had appointed the property agent about the potential sale of its tenanted estate.
“The Company confirms that Savills has been appointed and that it is in discussions regarding a possible sale,” it said.
“There can be no certainty, however, that any sale will proceed.”
The firm – which acquired 15 sites from Redcomb Pubs in January 2019 for £34m – said it would make further announcements when appropriate and is due to publish its full-year results.
Speaking to The Morning Advertiser’s (MA) sister title MCA Insight in November, Young’s CEO Patrick Dardis described the second half of 2020 as the toughest period in its 189 years.
In its half year H1 report for the 26 weeks to September 2020, Young's said sales were £55.1m, compared to £168.2m the year before, with the business recording an adjusted operating loss before tax of £19.2m.
Potential suitors
News of Young’s potential sale comes amid a flurry of merger and acquisition activity within the pub and bar sector since the turn of the year.
As reported by The MA, Sarah Willingham-founded Nightcap has been on the acquisition trail since its formation in September 2020, purchasing the 10 site-strong London Cocktail Club before striking a deal for Adventure Bar.
What’s more news of potential disposals by Young’s comes after the launch of Valiant Pub Company in January – by Gerry Carroll and Mark McGinty, co-founders of Hawthorn, and James Croft, former group strategy and retail director at Ei Group – as well as the Rooney Anand fronted, American backed, RedCat Pub Company.
As reported by The MA, RedCat acquired 42 pubs from Stonegate Pub Company for an undisclosed sum at the end of March.
What’s more, the founders of London-based ETM Group have since announced plans to raise £4.3m to fund new seven-site venture, Maven Leisure, while multiple operator Red Oak Taverns has also acquired 10 leased and tenanted pubs from operator and brewer Wells & Co for an undisclosed sum this year.
Sky reports discussions are already underway with prospective bidders.
