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17/09/2010

Acquisition of Ha Ha Bar & Grill

Mitchells & Butlers has agreed to acquire Ha Ha Bar & Grill from Bay Restaurant Group for a gross cash consideration of £19.5m.

After completion of the transaction on 3 October 2010, the 22 leasehold sites being acquired will be converted in due course into twelve All Bar One sites and six Browns restaurants with the remaining four operating as other Mitchells & Butlers brands. 

We expect the transaction to have an EBITDA return of approximately 25% following incremental capital expenditure of £8.5m.

Commenting on the transaction, Adam Fowle, Chief Executive, said:

"Whilst small, this acquisition illustrates our ability and our strategy to develop sites to create value for Mitchells & Butlers shareholders.  It will also provide an excellent opportunity to grow significantly two strong brands, All Bar One and Browns."

For further information please contact:

Corporate Affairs:

Erik Castenskiold       

0121 498 6513

Financial Adviser:

Peter Hansen (Sapient Corporate Finance)

020 7152 6162

Media:

James Murgatroyd (Finsbury Group)

020 7251 3801

Notes to editors

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The site locations acquired are as follows:

Bath

Kingston upon Thames

Portsmouth

Birmingham

Leeds

Reading

Bluewater, Kent

Liverpool

Sheffield

Brighton

Milton Keynes

Victoria, London

Bristol

Norwich

Villiers St, London

Cardiff

Nottingham

Windsor

Cheltenham

O2 Greenwich

York

Guildford

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Mitchells & Butlers serves around 125 million meals and 450 million drinks each year and is one of the largest operators within the UK's £70 billion eating and drinking out market.

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Mitchells & Butlers' leading portfolio of brands includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pub Co., Browns, Miller & Carter, Metro Professionals, All Bar One, Nicholson's and O'Neill's.  Further details are available on http://www.mbplc.com/ .

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