30/06/2014
Click here to download the UK Leisure Sector - Q2 2014 summary
Summary
Q2 2014 witnessed significant activity with a number of key events. Perhaps the most significant was the level of corporate transactions within the leisure sector. Heading a relatively long list is the purchase of 173 Orchid sites by Mitchells & Butlers for £266 million, equating to a 9.1x EBITDA multiple.
The future of the remaining 49 Orchid sites is, however, less certain, although a number of leasehold units are likely to revert to the Spirit Group who guaranteed the leases. The first substantial group of tenanted pubs since Cerberus purchased Admiral Taverns in January 2013 saw newly created Hawthorn Leisure, backed by the Avenue Group and May Capital, buy 275 tied lease pubs from Greene King for £80 million, reflecting an income multiple of 6.1x. Hawthorn quickly followed this up with the purchase of 88, largely Scottish, pubs from Barclays Capital forming part of the R & L portfolio.
Contacts:
Click here to download the UK Leisure Sector - Q2 2014 summary