RedCat secures first acquisition

31-Mar-2021 - Last updated on 16-Apr-2021 at 13:12 GMT

RedCat, the investment vehicle founded by former Greene King chief executive Rooney Anand, is to buy 42 pub sites from Yates's and Slug & Lettuce operator Stonegate.

The acquisition, which is expected to complete in the summer, marks the first acquisition Anand's new venture.

Stonegate confirmed the deal last night (30 March), following reports earlier in the day that the sale was imminent.

Disposal of the sites comes after Stonegate agreed with the Competition and Markets Authority (CMA) that it would offload 42 sites as a condition of its 2019 takeover of Ei Group to appease competition concerns.

The package comprises 30 freehold and 12 leasehold sites, and consists of 32 former Ei Group-owned properties and 10 former Stonegate sites.

Following completion of the disposal, Stonegate's estate will comprise 4,630 venues – consisting of 1,290 managed and 3,340 leased and tenanted pubs.

It was reported back in January that Anand, who left Greene King in 2018 having led the pubco for 14 years, had raised £200m from US investment fund Oaktree Capital to invest in Britain’s pub industry, betting on the prospects of a post-pandemic recovery for the sector.

Former New World Trading Company CEO Chris Hill is heading up RedCat Pub Company, with Sharon Badelek, formerly of Novus Leisure, joining as chief financial officer.

RedCat has said its objective is to partner with talented licensees, publicans and entrepreneurs to support the recovery of the pub sector.