Heineken in talks to buy 300 Stonegate pubs
The reported transaction comes as Stonegate reviews its pub portfolio while pursuing a broader estate transformation and debt reduction strategy.
UK – Heineken’s Star Pubs & Bars is reportedly in talks to acquire around 300 pubs from Stonegate Group in a deal valued at about £300 million (US$344.67M), according to reports.
The Sunday Times reported that Star Pubs & Bars is close to an agreement with Stonegate after negotiations over the summer. The proposed transaction would involve pubs from Stonegate’s Platinum portfolio of about 1,000 freehold sites.
Stonegate has previously said options for the Platinum portfolio could include a refinancing, partial sale or full sale. Other potential buyers are also interested in the sites.
Heineken operates about 2,350 pubs in Britain through Star Pubs & Bars, while Stonegate has an estate of about 4,500 pubs, including Slug & Lettuce and Be At One.
Stonegate has more than £3 billion of debt, largely accumulated through its £3 billion acquisition of Ei Group in 2019. The company is pursuing a transformation strategy under chief executive David McDowall.
In June, Stonegate said no decision had been made after reports that Terra Firma was considering a £300 million offer for around 300 pubs from the Platinum portfolio.
A Stonegate spokesperson said: “As we have previously said, we continue to look at options for the Platinum portfolio, which could include a refinancing, partial sale or full sale of the Platinum sites.
“No decisions have been made. We are continuing to make good progress on our transformation strategy, with profits up 9% to a record £201m in the first half of the year.”
Heineken has not confirmed the reported transaction. A spokesperson said: “We are aware of reporting regarding a package of pubs offered to the market by the Stonegate Group, but as a business we will not comment on speculation of this nature.”
The reported talks come as Stonegate continues to restructure its estate. Earlier this month, Stonegate identified around 100 pubs for transfer into its Pub Partners business.
Fuller’s has exchanged contracts to acquire 10 pubs in a £35.25 million transaction involving Stonegate.
Stonegate is facing scrutiny from the Pubs Code Adjudicator, which launched an investigation earlier this year into concerns over its leased and tenanted estate. The regulator has not reached any conclusions.
The transaction follows Stonegate’s efforts to consider options for its Platinum sites.
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