Stonegate Pub Company has purchased the 30-strong Intertain company, operators of the Walkabout brand, as it looks to become the 'leading provider of sports-led entertainment in the high street pub and bar market.'
The purchase includes sites in London, Cardiff, Brighton and Birmingham and will take the total Stonegate estate to 692 sites. The deal is due to complete on December 7.
Intertain reported business revenue of £44.8m in the year ended 30 January 2016, and site EBITDA of £6m.
Simon Longbottom, chief executive of Stonegate, said: 'We are delighted to be acquiring Intertain which is a business we know well and which we have hand-picked for its complementary fit with our existing portfolio. This is another great acquisition for Stonegate and is being acquired at an attractive multiple of c.5.0x pro forma EBITDA, taking into account anticipated synergies.
'Our track record of integrating, investing in and ultimately maximising value from drinks-led, town and city centre sites is unparalleled as we continue to exploit this market opportunity.'
Stonegate – owner of the Slug and Lettuce and Yates brands – has previously acquired a number of high profile high street pub companies, including 78 sites from Bramwell in 2014, 15 sites from Maclay’s and 52 pubs from Tattershall Castle Group in 2015. The company has also exchanged on contracts to acquire 10 sites from JD Wetherspoon, with seven completed to date.
Intertain, which surrendered a number of unprofitable leases in early 2015, expanded in recent years with the opening of sites including those in Lichfield and Solihull. Stonegate says it plans to invest in many of the 30 sites over the next three years.
John Leslie, CEO of Intertain, said: 'I couldn’t wish for a better home for Intertain than within Stonegate. Simon and the team are excellent operators, know the business well and will continue to invest, enabling both the business and the talented people within it to realise their full potential.'
Stonegate reported revenue of £625 million and adjusted EBITDA of £93 million for the 12 months to 3 July 2016.