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Mitchell & Butlers acquire rival pub chain in £266 million deal

National pub firm Mitchell & Butlers has acquired most of Orchid Group in a cash deal worth £266 million.

The move will see Mitchell & Butlers plc take control of Orchids 173 pub estate of predominantly freehold pubs and the firm’s head office operation in St Albans.

Mitchell & Butlers anticipate cost savings and synergies of at least £6 million a year available through rationalisation of support functions and combination of purchasing.

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.”

Mitchell & Butlers operate prominent brands such as Harvester, Brown’s and Toby Carvery.

This was posted in Bdaily's Members' News section by Tom Keighley .