Multi-site operator Redcomb Pubs Ltd, founded by Dan Shotton and Mark Draper (pictured), has been sold to Young’s for £34m on a cash-free and debt-free basis.
The deal, which represents a multiple of 8.5 x EBITDA, will see the 15-strong portfolio of pubs and bars transferred to Young’s managed estate division, bringing their total number of managed houses to 200.
Investment in the purchased pubs is planned over the next two years, which Young’s believes will have a short-term impact on profitability, but should have a positive impact thereafter. In the first full year of ownership, the pubs are expected to trade at the current run-rate, subject to the impact of any investments undertaken.
Turnover for the Redcomb reached £16.7m for the year ending 30 June 2018, representing an increase of 10.6% year-on-year, with profits over the same period rising by 11.9%.
“Our journey from single site in 2010 to the 15 pubs and bars you see today has been an incredibly exciting and rewarding one,” says Shotton. “We’ve always had a real passion for creating great pubs and have been lucky enough to have built an amazing team around us who share our passion and have helped us grow.
“Through this acquisition we are confident that the estate will continue to go from strength to strength, benefitting from its alignment and synergy with the ethos at Young’s.”
Read Pub & Bar’s interview with Redcomb from November 2016.