Private equity investors have high hops for the pub industry…

The UK pub sector is experiencing a surge in acquisitions, despite increasing pressures on consumer spending. Heineken UK has recently completed its purchase of part of Punch Taverns, making it the third largest owner of pubs in the UK. There is also an ongoing bidding war between Stonegate pubs (owner of the Slug and Lettuce chain) and The Deltic Group, to purchase the cocktail bar chain, Revolution Bars. Many analysts describe the sector as ‘recession proof’ and see it as a reliable and resilient investment opportunity for private equity firms and PLC investors. Investors will be hoping that external pressure on consumer spending, from events such as Brexit, will not dampen pub-goers’ spirits.