Mitchells & Butlers buys Whitbread sites

July 22, 2006: The growth of the Mitchells & Butlers pub brand is to accelerate following the acquisition of 239 pub restaurant sites from Whitbread plc.

Mitchells & Butlers is to pay £297 million for the properties, which are in residential areas and mostly in the South East and South West of England.

“With this transaction, we have secured 239 of the best pub restaurant sites in the UK, as defined by their locations, their scale, and above all their sales and profits potential," said Mitchells & Butlers chief executive Tim Clarke.

"The acquisition represents exceptional value compared with greenfield site
developments. The conversion of these sites to our brands and formats will enable us to create substantial shareholder value from this acquisition and accelerate Mitchells & Butlers’ growth.

“Not withstanding this acquisition, it is very pleasing to confirm that we are still expecting to return of the order of £500m to shareholders.”