S&N boosts pubs with £1.3bn Greenalls deal

Scottish & Newcastle chief executive Brian Stewart says yesterday’s £1.35bn acquisition of 831 Greenalls outlets fulfils “in a single step” its aim of moving into mainly branded and managed pubs.

Scottish & Newcastle chief executive Brian Stewart says yesterday’s £1.35bn acquisition of 831 Greenalls outlets fulfils “in a single step” its aim of moving into mainly branded and managed pubs.

Greenalls confirmed yesterday the long-touted sale of 531 managed pubs, 234 pub restaurants and 61 lodges to S&N, leaving it with its hotels and leisure and fitness clubs. Observers believe this could make it vulnerable to a bid from Whitbread.

S&N says the acquisition will help it focus its pubs business on three areas – large branded managed pubs, which it claims are growing much faster than smaller or un-branded pubs; branded restaurants and pub restaurants, where it will have 500 units; and lodges offering budget accommodation, a market which it says is “significantly under-developed in the UK”.

Stewart says: “In managed pubs, an estate of high quality, large outlets gives us great scope for successful brands like Barras & Co. In restaurants we will be able to exploit brands like Chef & Brewer and the food development skills which have brought us 50 per cent food sales growth over the past three years.”

The acquisition will enable S&N to expand its retail brands by converting 90 outlets to the Barras & Co community brand, and lessen the need for it to acquire new sites for branded developments.

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now