Stonegate, Revolution agree terms of share offer

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24/08/2017 - 09:36
The boards of pub company Stonegate and bar operator Revolution have reached agreement on the terms of a recommended cash offer by Stonegate for the share capital of Revolution.

The offer values it at £101.5m, which represents a premium of 62.4% on Revolution’s share price of 125p as it stood on the eve of Stonegate’s bid.

Revolution shareholders will get 203p in cash per share.

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.

“It provides considerable opportunities for our people and for the business as a whole.”

Ian Payne, chairman of Stonegate, added: “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.

“This acquisition is entirely consistent with our stated strategy to capitalise on the town and city centre drink-led opportunity.”

Stonegate is the fourth largest managed pub company in the UK in terms of number of operating sites, trading from 689. It began trading in 2010 following the acquisition of 333 pubs from Mitchells & Butlers.

The Revolution Group’s 54 Revolution bars focus on the premium segment of the drinks market with its sites operating from late morning until the evening to maximise their trading potential. It also has 14 Revolución de Cuba bars, which are inspired by Latin American themes, focus on a high-end offering to customers, including a rum-led cocktail range, a Latin American food menu and live entertainment.

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