Heineken is close to acquiring 300 pubs from Stonegate, the U.K.’s largest pub operator, for around €350 million, according to The Times.
The deal would expand Heineken’s presence in Britain’s pub market as heavily indebted Stonegate seeks to raise cash by selling some of its most valuable properties.
Stonegate has around €3.5 billion in debt and is seeking to sell approximately 1,000 of its pubs. The company operates about 4,500 venues across the U.K.
Heineken already operates around 2,350 pubs in Britain under its Star Pubs & Bars business. Its portfolio includes brands such as Amstel, Birra Moretti and Cruzcampo.
Debt burden drives Stonegate sale
Much of Stonegate’s debt stems from its £3 billion acquisition of rival Enterprise Inns in 2019. The deal left the company heavily leveraged just months before the Covid-19 pandemic forced pubs across Britain to close for extended periods.
The sector has since faced further pressure from rising beer, energy and wage costs, as well as higher employer taxes introduced under former Chancellor Rachel Reeves.
Stonegate is now looking to sell around 1,000 prime locations to reduce its debt burden and strengthen its finances.
Deal not yet guaranteed
Heineken and Stonegate reportedly came close to reaching an agreement following negotiations over the summer, but people familiar with the talks cautioned that the transaction has not yet been finalised.
Several other potential buyers, including major investment firms, are also reportedly interested. Some could seek to acquire Stonegate’s entire portfolio of 1,000 pubs rather than the 300-venue package under discussion with Heineken.
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