Patron Capital completes £1.8 billion acquisition of Punch Taverns

Claire Dodd

Claire Dodd

25 August 2017

Investment company Patron Capital has completed its 180p per share purchase of 3,200 mostly freehold or long lease pubs from Punch Taverns.

As previously reported, around 1,900 of the pubs have been sold to Heineken in a £305 million back-to-back deal, set to complete next week. Patron will own the remaining pubs as well as the Punch Holding Group.

Patron managing director, Keith Breslauer, said: 'Completing this complex deal paves the way for an exciting future for Punch as a more focused business. This is a company that has undergone a number of challenges and distractions in recent years but has a portfolio of high quality pubs with excellent future potential.

'Under private ownership, with strong financial backing and our commitment to continued investment, Punch’s pubs and publicans will have our full support to deal with changing market dynamics and provide their customers with the best possible offer.'

Punch is currently divided into two whole business securitisations, known as Punch A and Punch B. Punch A has approximately £770 million of gross debt, secured against the 1,900 pubs which have been sold to Heineken UK. Punch B has approximately £550 million of gross debt secured against around 1,300 pubs. Punch will continue to operate the Punch A pubs for Heineken for six months under a transitional services agreement.

Patron, who has partnered with May Capital on the investment, says it expects to invest in the remaining pubs through refits and 'adapting and modernising operating models' such as the roll-out of the managed operating format, and continued sale of non-core assets.

Duncan Garrood, chief executive of Punch, added: 'This has been a long road and we are delighted that we are now able to move forward with clarity. I am proud of the professionalism of the Punch employees during this period of uncertainty, and remain sure of their ongoing commitment as we look to an exciting future under new ownership.'

 

Related articles

News

Punch Taverns CEO Duncan Garrood steps down

Punch Taverns CEO Duncan Garrood has stepped down from the role following the completion of Patron Capital’s £1.8 billion acquisition of the company.[

Beer & Cider

Punch Taverns confirms rival takeover bids

Punch Taverns' board has confirmed that it has received rival bids to purchase the company, both from Heineken and from Punch's founder Alan McIntosh.

Spirits & Cocktails

Punch Taverns freezes spirit prices

Pubco Punch Taverns has pledged to freeze spirit prices for its more than 3,250 licensees until June/July 2017.The news comes after the pub operator f

News

Punch Taverns sells 158 pubs to New River

Punch Taverns has sold 158 pubs it has described as 'non-core' to its business, in a bid to shrink its estate following a significant debt restructure