M&B ready to strike for Georgica?

Leisure Report, May, 2008

Mitchells & Butlers, the OK pub group, is considering an approach to Georgica, Britain's biggest tenpin bowling operator, after a takeover of the embattled pub and restaurant group faltered.

A memorandum sent to potential buyers of M&B is understood to include a possible combination of Georgica's Tenpin operation with M&B's chain of 24 Hollywood Bowl venues, in a move that analysts said could lead to a spin-off of the enlarged business.

Leisure Report has seen a copy of this memorandum, and understands the possibility of a move for Georgica has been mooted at M&B for up to 18 months.

A strategic review being handled by Citigroup was also looking at an outright or partial sale of M&B, however, the withdrawal of Punch Taverns from the bidding, along with the effects of the credit crunch means that private equity group CVC Capital Partners and Blackstone, possibly working together, are likely to be the last remaining bidders for a M&B takeover, possible increasing the chances of a deal for Georgica.

The tenpin operator was involved in takeover talks with an unnamed bidder last year. Although the talks were shelved, Georgica remains hopeful a deal can be struck in the long term.