The UK’s largest bar operator Stonegate Pub Company has made a bid to take over its high-street rival, Revolution Bars Group.
The offer values the 68-strong operator of Revolution and Revolución de Cuba bars at exactly £100m with an offer price of £2 per share.
In a statement this afternoon, Revolution Bars Group confirmed it was in discussions about the proposal with Stonegate which is undertaking its due diligence review of the business.
It added: “There can be no certainty that any offer for the company will be made, nor as to the terms on which any offer might be made.”
Revolution Bars Group last week published a trading statement saying total sales for the year to July 1 were up 9.3% to £130.4m after opening six new bars while like-for-like sales were up 1.5%.
While like-for-like sales improved to 2.7% after the company’s year end, investors have been nervous since May when Revolution Bars Group warned that annual operating profits would be broadly flat, blaming the higher costs affecting the whole licensed trade. “These increased costs will be more than anticipated in the current year,” chief executive Mark McQuater said.
Stonegate operates 690 pubs, bars and clubs including Slug and Lettuce, Yates, Missoula, Popworld and Scream as well as many that are unbranded. In December last year, it added the Walkabout chain by taking over Intertain.
Revolution Bars Group currently trades from 68 sites – 54 under the Revolution format and 14 under the Revolución de Cuba format.