This includes 173 predominantly freehold pubs and the Orchid head office. The purchase price, paid entirely in cash, is £266m.
“The acquisition of the majority of the Orchid estate will accelerate Mitchells & Butlers’ growth and present significant opportunities for value creation through cost savings, synergies and the conversion of Orchid pubs to Mitchells & Butlers brands,” said chief executive Alistair Darby. “We greatly look forward to welcoming the Orchid employees who will transfer to Mitchells & Butlers as a consequence of this acquisition.”
The owners of Orchid have retained a number of leasehold sites. As Mitchells & Butlers has acquired the Orchid head office function, it has agreed to provide services to these sites for a period of up to 15 months, the terms of which have been agreed under a transitional services agreement.
Source: Mitchells & Butlers
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