Young’s and City Pubs have agreed to a recommended cash and share acquisition, with Young’s acquiring City Pubs at a valuation of £162m. City Pubs, led by Clive Watson, operates a portfolio of 50 premium pubs and bedrooms.
Upon completion, Young’s will expand its managed trading estate to 279 pubs, including a 25% increase in bedrooms to a total of 1,065. Watson acknowledges City Pubs’ achievements over the past 12 years, highlighting its resilience during the pandemic.
Watson explains that the City Pubs board, considering economic uncertainties and growth plans, initially rejected approaches but found Young’s offer to be in the best interests of shareholders, providing 75% equity realization in cash at a premium.
Simon Dodd, CEO of Young’s, expresses excitement about the acquisition, emphasizing the alignment of strategies and cultures between the two companies and the compelling opportunity it represents for stakeholders.