Shares in Mitchells & Butlers were up on the FTSE 250 in morning trading following news that the pub group is planning to buy Ha Ha Bar & Grill chain for £19.5 million.
The sale is expected to be completed in early October and will see 22 sites rebranded into Mitchells & Butlers brands. Twelve sites will become All Bar One bars, six will be turned into Brown restaurants, while the brand of the remaining four sites has not yet been decided.
Mitchells & Butlers said it expected an EBITDA return of around 25 per cent following capital expenditure of around £8.5 million.
Adam Fowle, Chief Executive of Mitchells & Butlers, said, "Whilst small, this acquisition illustrates our ability and our strategy to develop sites to create value for Mitchells & Butlers shareholders. It will also provide an excellent opportunity to grow significantly two strong brands, All Bar One and Browns."
By 09:00 shares in Mitchells & Butlers were up 1.53 per cent on the FTSE 250 to 299.00 pence per share.