FDBusiness.com

Heineken UK has made a £402.7 million recommended final cash offer to acquire Punch, one of the UK’s largest leased pub companies, with a portfolio of more than 3,500 pubs nationwide. Punch will be added to Heineken UK’s existing leased pub business – Star Pubs & Bars.

Stefan Orlowski, regional president Europe for Heineken, comments: “This transaction is a significant step forward in our strategy to unlock value in the UK pub market. The performance of our Star Pubs & Bars business clearly shows that well invested pubs, in the hands of skilled and ambitious independent operators can outperform. Leveraging our extensive experience will enable us to realise increased potential from the pubs we are acquiring and deliver positive returns to our shareholders.”

Our proven track record of success demonstrates that well invested and well run pubs in the leased and tenanted sector can thrive,” says David Forde, managing director of Heineken UK. “We look forward to welcoming new licensees in to Star Pubs & Bars, and to working with them to grow their businesses.”

Stephen Billingham, chairman of Punch, says: “The Punch board and management team have positioned Punch to drive long term value for shareholders and our recent performance has demonstrated the successful execution of this strategy reflecting the hard work and quality of the whole Punch team. While the board did not solicit this offer for the company, we believe this is a good outcome for shareholders as the offer provides cash certainty at a significant premium.”

Punch has focused strategically on helping its publicans to make the most of the changing market. With drinks-only pubs increasingly challenged by cheap supermarket sales, the company has been successfully helping Punch pubs to maximise their profits by shifting their offer towards food and entertainment.