Stonegate acquires Walkabout bar chain

Stonegate Pub Company, owner of Slug & Lettuce and Yates pub chains, has acquired Intertain, operator of Australian bar brand Walkabout for an undisclosed amount.

The purchase sees Stonegate take on 30 Walkabout sites in the UK from Intertain owner Better Capital, taking its number of sites to 692.

Intertain is a bar operator focusing on high street and sport-led entertainment with businesses across the UK including London, Cardiff, Brighton and Birmingham.

Simon Longbottom, chief executive of Stonegate, said the group were delighted to acquire Intertain which had been “hand-picked for its complimentary fit” with the company’s existing portfolio.

He said: “This is another great acquisition for Stonegate and is being acquired at an attractive multiple of c.5.0x pro forma EBITDA, taking into account anticipated synergies. Our track record of integrating, investing in and ultimately maximising value from drinks-led, town and city centre sites is unparalleled as we continue to exploit this market opportunity.

“Intertain’s strong association with sport in high street locations is synonymous with Stonegate’s prowess in this market segment and further consolidates our position as the leading provider of sports-led entertainment in the high street pub and bar market.

“We look forward to welcoming the employees of Intertain into the enlarged group and working with them to drive the on-going success of the business as we continue to progress our dual growth strategy of inward investment in our existing estate and expansion via selective acquisition.”

John Leslie, CEO of Intertain, said: “I couldn’t wish for a better home for Intertain than within Stonegate. Simon and the team are excellent operators, know the business well and will continue to invest, enabling both the business and the talented people within it to realise their full potential. It is a great cultural fit with Stonegate’s growing portfolio and I look forward to seeing the business go from strength to strength.”

The company plan to invest in 30 more Walkabout sites over the next three years.