Stonegate buys bigger rival in £1.3bn deal

Stonegate Pub Company has agreed to buy Ei Group in an all-cash deal of almost £1.3bn. The firm agreed to buy the entire share capital of the 4,000-pub strong group, at a price of 285p per share. Stonegate said there were “strong strategic reasons for combining the two groups”. Combined, the pub companies will have close to 5,000 properties across the UK. Stonegate said: “With greater scale and diversification, we believe that the combined group will be better positioned to compete effectively in what is expected to be a challenging operating environment for the foreseeable future.” Robert Walker, chairman of Ei Group, said: “The commercial benefits of combining the companies is compelling. Stonegate is committed to continuing to invest in the business for the future benefit of the combined business, tenants and employees.” The acquisition implies an enterprise value for the Ei Group of almost £3bn. To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette