Pesto founders Sara and Neil Gatt (pictured above) will continue to manage the business, which is predominantly based in the north west and Midlands, for an 18-month period to help M&B identify and convert sites to the Pesto brand.
The consideration for the business will be determined over two payments and is partly contingent on its future performance but will be no more than £15m.
“After 18 years, Sara and I are delighted to see our business become part of the M&B portfolio of brands,” says Neil Gatt.
“For Pesto to fulfil its true potential as an innovative and unique brand, it was always necessary for us to team up with a partner that had a substantial property portfolio within which to grow the brand and there is no better partner than M&B to do that.”
“I’m delighted to welcome the Pesto team to M&B,” adds M&B chief executive Phil Urban.
“It’s a business with a distinctive USP that we’ve long admired and will help us to further diversify and premiumise our brand portfolio.”
The news comes as M&B reported strong trading, with the pub and restaurant business claiming to be outperforming the market in like-for-like sales. It expects its annual results to be at the top end of its forecasts.
M&B, which operates brands including All Bar One, Nicholson’s and Sizzling Pubs, says the highlights of its half-year results – for the 28 weeks ended 13 April 2024 – are a like-for-like sales growth of 7%, and operating profit of £164m, up 64% on the previous year.
Total sales across the period were £1,396m, a 8.9% rise on 2023’s half year results.