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."
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Notes to editors