The proprietors of Punch Pubs are examining the possibility of acquiring their smaller competitor Amber Taverns, a move that would create a leisure business with approximately 1500 locations.
Punch Pubs, which is owned by the United States-based Fortress Investment Group, is among the parties that have requested information on Amber from sale-handling advisors.
Other large UK pub operators, including Heineken and Admiral Taverns, which is owned by Proprium Capital Partners, are anticipated to investigate bids for Blackpool-based Amber, according to sources in the City. However, it was unclear as of Thursday if they would submit formal offers.
The auction, which is being conducted by Sapient Corporate Finance, might fetch a price tag of approximately £200 million, despite rising worries of a recession and a significant slowdown in consumer spending, which may depress value expectations.
Inflationary pressures have a severe effect on the hospitality industry, except for “wet-led” pubs, which rely on the sale of alcoholic beverages rather than food.
MxP, an investment entity established by Michael George, the former majority shareholder of Weetabix, owns Amber.
Ares Capital Management also supports the pubs business, which has a strong presence in northern England, Wales, and the Midlands.
It operates approximately 160 pubs, which, when added to Punch’s 1300 venues, would solidify the latter’s position as one of the largest pub operators in the United Kingdom.
Late last year, Fortress acquired Punch from Patron Capital Partners, a specialist real estate investor, for almost £1 billion.
The company refused to comment.
