Stonegate Pub Company and Town & City Pub Company Merger

Stonegate Pub Company and Town & City Pub Company have merged to form the largest privately held managed pub operator in the UK, with a combined portfolio of 560 pubs and revenues approaching half a billion pounds, reports Property Week.

The merger is the first significant transaction for Stonegate since it was formed by private equity firm TDR Capital to acquire pubs from Mitchells & Butlers in November 2010.

The merged entity will be called Stonegate Pub Company, with TDR Capital as the majority owner.

In 1998 TDR Capital were the original backers of Punch Taverns, orchestrating the acquisition of an estate of 1,428 pubs from Bass and the first tied pub securitisation. In 2003 TDR Capital acquired PizzaExpress, combining it with ASK in 2004 to create the Gondola Group, a leading casual dining group with over 500 restaurants across the UK.

“The UK pub industry continues to undergo significant change. This merger further strengthens our platform and positions us to be leaders in this shake-up.”