Stonegate and Town & City pub companies merge

The merger, announced by European private equity firm TDR Capital, creates a company comprising 560 pubs with brands including Yates's, Slug & Lettuce, Reflex and Molloy's that will employ more than 10,000 people. It will be known as Stonegate Pub Company with TDR Capital as the main owner.

Ian Payne, chairman of Stonegate, will remain in his role at the new company while Toby Smith will take on the role of chief exective. Chief financial officer is Chris Keen and Suzanne Baker and Graham Jones will take on the respective roles of commercial director and chief operations officer.

Largest pub operator​

Payne, who was with Stonegate when it bought 333 wet-led pubs from Mitchell's & Butlers last November, said the merger made 'strategic and commercial sense'

"Both businesses are in year to date sales growth and, by combining their excellent people and properties, the enlarged Stonegate is in a strong position to continue to outperform the market," he said.

Manjit Dale, TDR Capital's founding partner said the partnership would make the company a leader in the 'changing UK pub industry'

He said: "Stonegate has developed into a leading pub operator with a high-quality, well-located estate with over 300 pubs in most major towns and cities across the UK. Town & City has a strong customer proposition and will be an excellent complement to Stonegate. It has been well stewarded through a very tough trading period by its banking consortium owners and we believe will further benefit from being owned by a dedicated, strong pub and leisure group."