Punch Taverns, the leased pub group, has announced it has agreed to sell 290 former Spirit pubs to Orchid Pubs Limited, a company formed by GI partners (GIP), the US private equity firm, for total proceeds, on a cash and debt free basis of £571m. The package of 290 pubs, which include a number of sites under the Country Carvery, Q’s and Bar Room Bar brands, were part of a planned disposal of 380 pubs announced by Punch in May. The company is also selling the Old Orleans business as well as a clutch of top food sites. Punch has confirmed it will use the proceeds from the disposal, which is subject to shareholder approval, to primarily reduce short-term debt. Giles Thorley, chief executive of Punch, said: “The transaction represents the first major disposal by Punch following the acquisition of Spirit in January 2006 and is wholly in line with our strategy to streamline the managed house business whilst converting 740 pubs to our core leased estate.” M&C Report announced yesterday that GIP, which bought Yates Group for £153m in 2004 before selling it to R20 for £202m last year, had entered exclusive negotiations with Punch to buy the 290 sites. It is thought the American firm, which manages funds for Calpers, California’s state pension fund, beat rival bids from R20, Alchemy Partners and Wolverhampton & Dudley Breweries for the package of pubs. It is also thought that GIP will appoint Rufus Hall to run the business. Hall ran Ha Ha Bar & Canteen before joining Noble House to head up the Jim Thompson's and Yellow River Cafe restaurant chains, which were recently acquired by GIP in a £20m deal. GIP, which is understood to want to build sizeable restaurant, pub and hotel group, has also made two acquisitions in the healthcare sector in the past two years.

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