Member Article

Slug and Lettuce owner agrees £105m deal for Revolution bars

Stonegate Pub Company, the pub chain which operates brands including the Slug and Lettuce and Town Pub & Kitchen, has reached an agreement with Revolution Bars Group for a nine-figure cash offer for the premium drinks operator.

Announced to the stock exchange this morning, the group said that a recommended cash offer for the entire issued share capital of Revolution had been reached that values the company at around £101.5m.

Stonegate, which is the fourth largest pub operator in the UK, said it will offer shareholders in Revolution 203 pence per share, a premium of 62% on the bar operator’s closing share price on 28 July.

Once the deal has been confirmed, the newly enlarged group will boast a portfolio of 743 venues across the UK, including 669 Stonegate pubs and 54 Revolution bars, making it one of the biggest hospitality operators in the country.

Ian Payne, Chairman of Stonegate, said: “We are delighted to announce this agreement with Revolution, which is a business we know well and whose leading position in the premium segment of the drinking out market is a highly complementary addition to our existing offering.

“Our strong reputation and position in the market firmly establishes Stonegate as the natural home for Revolution’s brands, and will allow us to enhance further the breadth of offer and occasions we cater for.”

Keith Edelman, non-executive chairman of Revolution, said: “We believe that the offer from Stonegate represents an attractive and certain value in cash today for Revolution Shareholders, reflecting the high quality of the business, its people, market position and future prospects.

“The Stonegate proposal provides considerable opportunities for our people and for the business as a whole. Stonegate is an experienced operator in this sector that understands Revolution’s ethos with its unique premium bar offering.”