Spirit sells city centre pubs

Pub operator Spirit Group has sold its 178-strong city centre pubs and bars division to the newly formed Tattershall Castle Group for £177m.

Tattershall Castle Group was backed by private equity company Alchemy Partners. The group is named after London's floating boat-pub the Tattershall Castle, which is moored at Charing Cross pier.

A number of parties looked at the division earlier this year, including Robert Tchenguiz's Laurel Pub Company, but Alchemy emerged as a frontrunner earlier this month.

The city centre division includes Bar 38 and the Rat and Parrott brands.

Spirit chief executive Karen Jones said: "We are pleased to have brought this process to a successful conclusion. Our city day and night pubs are great assets and I am sure that they will prosper under Alchemy."

Spirit said the sale would allow it to concentrate on its core community and food-led pubs, although there has been speculation about its future direction.

Jones is said to be keen on floating the 2,000-strong company, while its backers, which include Texas Pacific Group, Blackstone and CVC Capital, seem to favour a sell off to trade buyers, with Punch Taverns and Mitchells & Butlers linked to a deal.

by Chris Druce