Mitchells & Butlers
|This article needs additional citations for verification. (March 2014)|
|Type||Public (LSE: MAB)|
|Founded||15 April 2003|
|Headquarters||Birmingham, United Kingdom|
|Key people||Bob Ivell, (Chairman)
Alistair Darby, (CEO)
|Products||c. 1600 restaurants and pubs|
|Revenue||£1,895 million (2013)|
|Operating income||£312 million (2013)|
|Net income||£135 million (2013)|
|Subsidiaries||All Bar One, Browns Restaurants, Harvester|
Mitchells & Butlers plc (LSE: MAB) (also referred to as "M&B") runs around 1,600 managed pubs, bars and restaurants throughout the United Kingdom. The company's headquarters are in Birmingham, England, United Kingdom. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Historic brewing company
Mitchells & Butlers Brewery was formed by the merger of two breweries in 1898. The company merged with Bass in 1961. With the brand currently under ownership of Coors Brewers, the brewery closed in 2002 with production switched to Burton upon Trent. Their most famous beer was Brew XI (using Roman numerals, and so pronounced Brew Eleven), advertised with the slogan "for the men of the Midlands". It is now brewed under licence for Coors by Brains of Cardiff.
Bass plc, based in Burton-on-Trent, transformed into separate brewing and retail divisions following the Beer Orders of 1989 and then proceeded to build a large hotel portfolio alongside its bingo, betting and electronic leisure interests. In the late 1990s the latter interests were sold. On 21 July 1995, Bass bought 78 Harvester restaurants for £165 million from the Forte Group.
In 2000, Bass also divested its brewing arm and rebranded itself Six Continents before another split in April 2003 into two separate companies, with the hotel assets forming InterContinental Hotels Group and the Mitchells & Butlers name brought back for the pubs and restaurants company. In March 2003, Six Continents fought off a proposed £5.5 billion takeover by Hugh Osmond (Punch Taverns).
M & B
M & B was formed on 15 April 2003. In April 2006, it was approached by a consortium led by Robert Tchenguiz in a £2.7 billion takeover, which was dropped in May 2006.
In January 2008, Mitchells & Butlers announced significant losses (£274 million) arising out of closure of hedge positions taken in anticipation of a property joint venture that were eventually cancelled due to the credit crunch caused by the subprime mortgage financial crisis.
By 2006, it had 130 Harvester restaurants. In 2001, it added Arena, Ember Inns, Flares, Goose, Sizzling Pub Co, Browns, Alex and Inn Keeper's Lodge to its list of brands.
In July 2006, it purchased 239 pub restaurants (Beefeater and Brewers Fayre without a Premier Inn) from Whitbread for £497 million to strengthen its food business ahead of the introduction of a smoking ban in enclosed public spaces in England in 2007. It had first announced its interest in April 2006.
In September 2010 it bought the 22 restaurants of the (upmarket) Ha Ha! chain from the Bay Restaurant Group for £19.5 million. Twelve were turned into All Bar One and six into Browns Restaurants. The Ha Ha! brand disappeared.
In June 2014, the company announced plans to acquire the bulk of one of its major competitors, Orchid Group, for £266 million. This acquisition will include 173 pubs.
Sale of pubs
On 15 July 2010, it was announced Travelodge had acquired the leases of 52 Innkeeper’s Lodge Hotels around Glasgow, Birmingham, Liverpool, Northampton, Milton Keynes and Leeds areas from Mitchells & Butlers. It also sold its 25 Hollywood Bowl outlets in August 2010 for £39 million to AMF Bowling.
In November 2010 it sold 333 pubs to the Stonegate Pub Company (of London and owned by TDR Capital) for £373 million. These pubs were the drinks-focussed (lower price) outlets such as Flares and Scream Pubs, which mostly had late-night licences. Also sold were High Street Bars & Venues, Town Pubs and Community Pubs. The deal was monitored and completed by then Managing Director Roger Moxham, who spent 2 weeks meeting with lawyers and representatives to make one of the biggest deals Mitchells and Butlers ever completed.
||This section possibly contains original research. (March 2014)|
Mitchells & Butlers now owns several brands of pubs, including:
- Toby Carvery
- All Bar One
- Browns Restaurants
- Miller and Carter
- Vintage Inns
- Sizzling Pubs
- Crown Carveries
- Ember Inns
Also Mitchells & Butlers owns the small UK hotel brand Innkeepers Lodge
Other brands and concepts include Castle, Premium Country Dining Group, Village Pub and Kitchen, and Alex bars (Germany)
- Whitbread - also sold off its brewing interests around the same time.
- Preliminary Results 2013
- "Mitchells & Butlers - About us - Our people". Mbplc.com. Retrieved 2014-03-25.
- "Our history". Mitchells & Butlers. Retrieved 2008-03-26.
- "Brewery at Quaffle". Directory of Real Ale Breweries. Retrieved 2008-10-03.
- "Business | Six Continents wins £5.5bn bid battle". BBC News. 2003-03-13. Retrieved 2014-03-25.
- "Business | Investors drop M&B pub group bid". BBC News. 2006-05-08. Retrieved 2014-03-25.
- "Business | Punch unveils M&B merger proposal". BBC News. 2008-02-04. Retrieved 2014-03-25.
- "Business | Punch rules out pub deal with M&B". BBC News. 2008-04-18. Retrieved 2014-03-25.
- "Business | M&B eyes Punch pub chain Spirit". BBC News. 2008-04-14. Retrieved 2014-03-25.
- "Business | Pub owner's credit crunch losses". BBC News. 2008-01-29. Retrieved 2014-03-25.
- Simon Bowers (2008-01-28). "M&B could blow a year's profit on £300m hedge loss". Guardian Unlimited. Retrieved 2008-03-26.
- Simon Bowers (2008-01-29). "Tchenguiz raises stake in pub group". Guardian Unlimited. Retrieved 2008-03-26.
- Cunill, Onofre Martorell (2006). The Growth Strategies of Hotel Chains: Best Business Practices by Leading Companies. Haworth Press. p. 29. ISBN 0-7890-2664-3.
- "Business | Beefeater sites bought by M&B". BBC News. 2006-07-21. Retrieved 2014-03-25.
- "Business | M&B confirms Beefeater interest". BBC News. 2006-04-28. Retrieved 2014-03-25.
- Finance. "Whitbread eyes further swaps after Mitchells & Butler's deal". Telegraph. Retrieved 2014-03-25.
- Hiscott, Graham (2010-09-18). "Mitchells & Butlers buys Ha Ha bar chain for £19.5million - Mirror Online". Mirror.co.uk. Retrieved 2014-03-25.
- "Britain’s Mitchells & Butlers to Acquire 173 Pubs". nytimes.com. 2014-06-16. Retrieved 2014-06-18.
- [dead link]
- "Business | M&B sells off 102 community pubs". BBC News. 2006-10-05. Retrieved 2014-03-25.
- Paskin, Becky (2010-07-15). "Travelodge acquires 52 hotels from Mitchells & Butlers". Bighospitality.co.uk. Retrieved 2014-03-25.
- "BBC News - Mitchells & Butlers sells its Hollywood Bowl business". Bbc.co.uk. 2010-08-09. Retrieved 2014-03-25.
- "Stonegate Pubs". Stonegate Pubs. Retrieved 2014-03-25.
- Mitchells & Butlers plc
- Entry for brewery at Beer Mad
- Mitchells & Butlers company profile on CatererSearch
- Profits fall in May 2011
- Buying Ha Ha! in September 2010
- Chief Executive quits in May 2009
- Food sales in September 2008
- Acquiring restaurants from Whitbread in July 2008
- Food sales in April 2008