Stonegate Pub Company has beefed up its estate by agreeing to take over rival operator Intertain, owner of the Walkabout chain.
Stonegate will buy the business from private equity firm Better Capital in a deal worth almost £40m. It has vowed to take the group forward by investing in many of the 30 sites that it has acquired over the next three years.
Simon Longbottom, chief executive of Stonegate, said that Intertain’s association with sport in high street locations fit perfectly with its own strengths in this segment. It will use the acquisition to consolidate its position as a leader of sports-led entertainment in the high street pub and bar market.
“We are delighted to be acquiring Intertain which is a business we know well and which we have hand-picked for its complementary fit with our existing portfolio,” he said.
The acquisition, which is due to be completed today, will take Stonegate’s portfolio to nearly 700 operating venues.
Better Capital invested in Intertain two years ago and has successfully restructured and invested in the business, returning it to a profitable and cash generative group.