Pub operator Spirit Group has sold its 178-strong city centre pubs and bars division to the newly formed Tattershall Castle Group for £177m.
The new group is backed by private equity company Alchemy Partners and is named after the London floating pub, Tattershall Castle, which it now owns.
Peter Brook, previously chief executive at pub company InnSpired, will head the new pub company.
A number of parties looked at the division earlier this year, including Robert Tchenguiz's Laurel Pub Company.
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 pub business, while its backers, which include Texas Pacific Group, Blackstone and CVC Capital, seem to favour a trade sale.
Among companies linked with Spirit in recent weeks has been its former owners, Punch Taverns, and Mitchells & Butlers.
Alchemy currently has money invested in QHotels, previously Quintessential Hotels, and also backed Paramount Hotels.
by Chris Druce