It was confirmed yesterday that Deutsche Bank has placed the Orchid Pub Group on the market through Sapient Corporate Finance after having only been in control of the group for just over a year.
The 256-strong company, who operates brands the Living Room and Bar Room Bar, had sales of £181m in 2011 with average sales per week per pub of £13,900. Group Ebitda in the 2011 financial year stood at £32.2m at house level. Its Parkmill Pub Management Company also produced an income of £1,060,000 for the company in 2011.
Orchid fell into Deutsche Bank’s hands after a debt-for-equity swap early last year that saw private equity firm GI Partners, the previous owners of Orchid, lose out.
After a £50m investment in the estate, as well as the booming popularity of high-end pubs that serve food, Deutsche is ready to make an exit. It is thought the business could be worth up to £300m.
The group’s restructuring last year, which came after it warned that it was likely to breach existing covenants, was the second in four years. After it was formed by GI Capital, which paid £571m for 290 Punch Taverns pubs in 2006, Orchid went through a pre-pack administration in 2008.