Spirit Group has sold the178-strong City Day & Night division to the newly formed Tattershall Castle Group for £177m. Tattershall Castle Group was backed by private equity company Alchemy Partners. Karen Jones, Spirit’s chief executive, 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. "This deal allows Spirit to focus on our core community and food-led pubs, which, as demonstrated by our trading figures, continue to gain real momentum." The estate, around half of which is freehold or long-term lease, includes up to 10 nightclubs as well as trophy assets such as the Tattershall Castle, a converted boat moored on the Thames on London’s Embankment that recently underwent a £4.4m refurbishment. The sale includes brands such as bar 38 and Rat & Parrot. Jon Moulton, managing partner at Alchemy, said: "We are delighted to have backed this transaction – we always wanted a flagship pub!" The businesses last year produced ebitda (earnings before interest, tax, depreciation and amortisation) of around £30m although sources privy to the trading information suggest that ebidta for the first half of the current year, which included Christmas, slipped to £12.9m. Food sales account for less than 10% of the turnover of the estate. Rumours of the deal were first reported in August in M&C Report. The 178-strong package was put up for sale in April following a strategic review. Punch Taverns and Mitchells & Butlers are currently linked to a possible £2.5bn bid for Spirit, which would not be affected by the Alchemy deal.