Young’s adds City Pub Group to growing empire in £162m deal

Pub giant Young’s will buy City Pub Group, the posh pub chain behind popular Chelsea haunt The Phene.

In an update to markets this morning, the near 200-year old pub business said its latest deal would “substantially” increase the number of premium bedrooms within the estate more than 25 per cent to 1,065.

The deal values City Pubs Group at around £162m, with the deal representing a 46 per cent premium on the group’s closing price last night.

Clive Watson, executive chairman of City Pubs, said: “Like all hospitality businesses, the pandemic derailed City Pubs’ progress, but it has been able to produce a strong performance since with a more focussed, reshaped business with the lowest debt in its history and a solid strategy in place.

“The City Pubs Board has therefore been able to evaluate today’s recommendation from a position of strength.

He added: “Mindful of the uncertain economic climate, high interest rates and inflation in particular, and our plans for long term growth as an independent company, initial approaches were rejected.”

The news comes in conjunction with Young’s interim results with the chain revealing the amount of boozer’s flocking to the City and central London is now “comfortably” ahead of pre-pandemic levels.

In the region, like-for-like sales growth reached eight per cent thanks to investment in two of its pubs The Porchester in Westbourne Grove and the Paternoster in St Paul’s.

The Rugby World Cup also did wonders for takings, the firm said.

Revenue for its whole estate during the term reached £196.5m up 5.4 per cent on last year’s figures.