Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Mitchells & Butlers (MAB)

  Print      Mail a friend

Monday 16 June, 2014

Mitchells & Butlers

M&B acquires the majority of Orchid Group Estate

RNS Number : 6724J
Mitchells & Butlers PLC
16 June 2014
 



MITCHELLS & BUTLERS PLC

16th June 2014

 

 

MITCHELLS & BUTLERS PLC ACQUIRES THE MAJORITY OF THE ORCHID GROUP ESTATE FOR £266 MILLION

 

Mitchells & Butlers plc ("Mitchells & Butlers"), the UK's largest operator of managed pubs and restaurants, announces today that it has acquired the majority of the activities of the Orchid Group ("Orchid"), including 173 predominantly freehold pubs and the Orchid head office. The purchase price, paid entirely in cash, is £266 million.

 

Highlights

 

·      High quality, well-located estate of 173 pubs, of which 158 are freehold or long leasehold.

 

·      Expands Mitchells & Butlers' share of the growing UK branded pubs and restaurants market in line with its stated strategy.

 

·      Opportunity for substantial sales and profit uplifts from conversion of 96 pubs to Mitchells & Butlers brands and formats over a two year period.

 

·      Cost savings and synergies of at least £6 million per annum available from rationalisation of support functions and combination of purchasing.

 

·      Immediately enhancing to adjusted earnings1 with further improvements to earnings and returns as cost savings and synergies are realised and as conversions are undertaken. Overall, expected double digit earnings enhancement1 with returns well ahead of cost of capital.

 

Commenting on the transaction Alistair Darby, Chief Executive of Mitchells & Butlers, said:

 

"The acquisition of the majority of the Orchid estate will accelerate Mitchells & Butlers' growth and present significant opportunities for value creation through cost savings, synergies and the conversion of Orchid pubs to Mitchells & Butlers brands. We greatly look forward to welcoming the Orchid employees who will transfer to Mitchells & Butlers as a consequence of this acquisition."

 

Details of the transaction

 

Mitchells & Butlers has acquired the majority of the Orchid estate following a sale process conducted by the owners of Orchid. The acquired assets comprise 173 pubs, the Orchid head office function and associated brands, contracts and licenses (the "Acquired Assets"). The transaction is structured as a purchase of assets and certain trading companies. Definitive documentation has been executed with the vendor, Orchid Structureco 1 Limited, at which time the transaction simultaneously completed.

 

The consideration for the acquisition is £266 million which has been settled in cash and which is subject to an adjustment of up to £2 million depending on the level of working capital and cash in the business at completion. Mitchells & Butlers has funded the substantial majority of the consideration using existing cash resources in addition to putting in place unsecured facilities totalling £150 million, provided by existing lenders. The new facilities have a maturity of three and a half years.

 

The owners of Orchid have retained a number of leasehold sites. As Mitchells & Butlers has acquired the Orchid head office function, it has agreed to provide services to these sites for a period of up to fifteen months, the terms of which have been agreed under a transitional services agreement ("TSA").

 

Principal benefits of the transaction

 

·    Expands Mitchells & Butlers' share of the UK branded pubs and restaurants market which is expected to grow by 6% per annum between 2014 and 2018. This is in line with Mitchells & Butlers' stated strategy to focus on long-term growth in the eating-out market.

 

·     Opportunity for significant increases in sales and margin. The strength of Mitchells & Butlers' brands and formats, together with operational expertise in brand development and evolution has driven average weekly sales of £22.7k from Mitchells & Butlers' pub restaurants, compared to £15.3k per week generated by the Acquired Assets. Due diligence, site appraisals and detailed plans have already been formulated to convert 96 Orchid sites to Mitchells & Butlers brands and formats such as Harvester, Toby Carvery, Ember, Miller & Carter, Castle and Vintage Inns over the next two years. Capital investment in conversions of the Orchid sites of approximately £35 million is estimated over the two years, generating strong incremental returns. This conversion programme will complement Mitchells & Butlers' existing expansion plan over the same time period.

 

·     Mitchells & Butlers intends to add 77 of the pubs in the Acquired Assets to its Heartland portfolio. Many of these sites have recently received investment and will be able to continue trading at their current strong sales and profit levels, further benefiting from purchasing synergies as a part of the enlarged Mitchells & Butlers group. A small number may be considered for disposal.

 

·    Significant cost synergies are achievable from the transaction. Orchid's support functions will be combined with Mitchells & Butlers' when the TSA is concluded which, in addition to purchasing scale benefits is anticipated to result in savings of at least £6 million per annum. Within its current year results Mitchells & Butlers intends to report an exceptional item of approximately £10 million representing cash costs associated with the transaction of approximately £4 million and costs to be incurred through restructuring and integration of the two businesses of approximately £6 million.

 

Information on the Acquired Assets

 

The Acquired Assets include 173 managed pubs from the Orchid Group. These are spread across the UK with a bias towards the South East and North West of England. There are 151 freehold, 7 long leasehold and 15 short leasehold sites.

 

The gross assets of the Acquired Assets were £188.9 million as at 31 December 2013. On a run-rate basis2 the Acquired Assets generated sales of £138.0 million and made a profit contribution before allocation of head office costs, depreciation, amortisation, interest and tax of £29.2 million. The head office costs for the year to 31 December 2013 were £8.3 million on a run-rate basis2.

 

 

 

 

Notes:

1: This should not be construed as a profit forecast. In particular, it should not be taken to mean that the earnings per share of Mitchells & Butlers for the year ending 30 September 2014 will necessarily be higher than for the year ended 30 September 2013.

 

2: Run-rate financials adjust for the effects of sites that have been closed during one-off renovation periods during the year. They also include the annualised profit uplift from these renovations and head office cost savings.

 

UBS acted as sole financial adviser to Mitchells & Butlers on the transaction.

 

 

Enquiries:

Tim Jones - Finance Director

+44 (0)121 498 6112

James Murgatroyd (RLM Finsbury)

+44 (0)20 7251 3801

 

 

Notes for editors:

·      Mitchells & Butlers is the UK's largest operator of managed restaurants and pubs, with an estate comprising 1,592 managed businesses and 59 franchised businesses as at 12 April 2014. Its portfolio of brands and formats includes Harvester, Toby Carvery, Country Pubs, Sizzling Pubs, Crown Carveries, Oak Tree Pubs, All Bar One, Browns, Miller & Carter, Castle, Alex, Nicholson's, O'Neill's and Ember Inns. Further details are available at www.mbplc.com.

 

·      Mitchells & Butlers currently serves around 130 million meals and 410 million drinks each year and is one of the largest operators within the UK's £75 billion eating and drinking out market.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQDMGMVKVVGDZG