Pubs and Bars

Greene King acquired by CKA

Pub brewer and operator Greene King is set to be acquired by CKA Group for £2.7bn, with a further £1.9bn debt taken on by the group.

The pub company will fall under CKA Bidco, a new arm of the group, which owns the Sheraton Hong Kong Hotel and Towers as well as a small portfolio of freehold pubs in the UK, which have been leased to Greene King since 2016.

Green King operates nearly 3,000 pubs, restaurants and hotels, and owns brands including Hungry Horse and Chef & Brewer, it also employs over 38,000 people.

Gerald Ma, executive committee member and general manager, corporate business development department, CKA said: “We have come to know Greene King well as we have been an owner of a portfolio of pubs which have been leased to them since late 2016.

“We share the strategy which Greene King has set out in its recent results announcement, that is to focus efforts on developing the brand, enhancing the service offering, training and retaining talent, executing an active estate management strategy, and all under a prudent financial management policy. I look forward to working closely with the management team as we embark on the next stage in the company’s growth.”

Philip Yea, chairman of Greene King, added: “The Greene King board is confident in the long term prospects of the business but believes this offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while also ensuring the future success of Greene King for employees, partners, customers and suppliers. We are therefore unanimously recommending it to our shareholders.”

This deal follows the £3bn acquisition of UK’s largest pub operator Ei Group by Stonegate in July.

Back to top button