CVC circles Punch Taverns

New chief executive Ian Dyson is currently undertaking a review of the group, which has a market cap standing at £417.12m.

CVC would be bidding for both the managed and leased pub operations of the company. But the private equity firm could face competition from TPG, which is also understood to be aiming for Punch Taverns' leased pubs operations.

Both CVC and TPG were major shareholders in the company before it went public in 2002.

In addition, other bidders are rumoured to be eyeing the managed pubs business of Punch Taverns. These include TDR Capital - which recently bought 333 pubs from Mitchells & Butlers - Apax Partners, Bridgehouse Capital, Charterhouse and Cinven.

Founded in 1997, Punch Taverns is one of the UK's largest pub companies, with a portfolio of 6,770 pubs across both managed and leased estates. Punch Pub Company is the managed division, comprising 803 pubs nationwide. The leased division, Punch Partnerships, comprises 5,967 establishments.

The company posted revenues of £1.28bn for 2009, with a £100m EBITDA. However, the leased and managed pub estates have combined debt of £3.1bn. Sources said Punch Taverns was in no danger of breaching covenants on its bank loans as of yet.

The unquote" team is currently researching this transaction. In-depth deal information for subscribers will follow shortly.

If you have any information regarding this transaction, please contact Grégoire Gille on +44 20 7484 9824 or gregoire.gille@incisivemedia.com

 

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