October, 2010
Global Leisure Partners LLP Advises Stonegate on Acquisition of a Portfolio of 333 pubs

LONDON (October 2010): Global Leisure Partners LLP ("GLP") is delighted to announce that it acted as financial advisor to Stonegate Pub Company Limited ("Stonegate"), a company controlled by TDR Capital LLP ("TDR Capital"), in the acquisition of a portfolio of over 330 managed pubs from Mitchells & Butlers plc ("M&B"), the listed UK-based operator of managed pubs, bars and restaurants, for an announced enterprise value of £373m.

The investment in the estate was attractive to Stonegate for a number of reasons including the potential for operational improvement and as a platform to participate in industry restructuring.  The estate is intended to form the nucleus of a new pub and leisure group that plans to expand as the pub and on-trade industry undergoes re-organisation over the coming years.

Stonegate now holds an estate of over 330 pubs located throughout the UK, focused on the drinks-led market. It is primarily freehold-backed and consists of branded and unbranded sites in the following formats across the UK: Community Pubs, which are local pubs catering to neighbourhood customers; Town Pubs, which are high-street pubs; Bars & Venues, which are late-night bars and nightclubs; Scream Bars, which are bars targeted at students; and other managed pubs.  Further information can be located at: http://www.stonegatepubs.co.uk.

Commenting on the transaction, Manjit Dale, TDR Capital’s Founding Partner, said:

"We are extremely pleased with this transaction, which has enabled Stonegate to begin operations as a leading pub operator with a high quality estate.  We believe the UK pub industry will undergo significant reshaping in the coming years and Stonegate will provide us with a platform to actively participate in this re-organisation."

Mervyn Metcalf, GLP Managing Director, commented:

"We are delighted to have completed this transaction with Stonegate and believe that benefits exist for both parties; Stonegate can focus on the drinks-led market and lead the recovery and consolidation of this sector whilst M&B can further focus its attention on the informal eating out market.  For GLP this is our first deal in the pub sector, an area which we will continue to focus upon over the next twelve months."

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