Enterprise clinches pounds 48m agreed bid for Gibbs Mew

Gibbs Mew, the West Country-based pub operator, which would have celebrated its centenary this year, has been swallowed by Enterprise Inns, its acquisitive rival.

Andrew Yates reports on the latest deal in the rapid consolidation of the pub industry which shows no signs of slowing down.

Gibbs Mew's directors are in line for a payout of nearly pounds 10m after Enterprise launched a pounds 48m, 345p a share, agreed bid for the local pub operator. Tom Hedderson, the groups chairman, John Hedderson, the managing director, and Roger Gibbs, the last family board member, will all become instant millionaires.

The bid closes the chapter on a long and distinguished history in the pub industry for Gibbs Mew. The Gibbs family have been brewing beer for at least 250 years, first in Surrey, then Salisbury, Wiltshire. In 1898 they merged with fellow family brewer Henry Mew, to form the present company.

Until now the group has fought fiercely for its independence, repelling a hostile approach in 1992 from Brierley Investments, the investment group set up New Zealand entrepreneur Ron Brierley.

However, Gibbs Mew came under the bid spotlight after it finally sold its Salisbury brewery, which has run into financial trouble, last summer. Several companies are believed to have put a slide rule over the group, including Nomura, the Japanese bank which has emerged as the biggest pub landlord in Britain. But Enterprise won out in the bidding race, moving quickly to make an offer after sewing up a deal to sell the Gibbs Mew's drinks wholesaling business to Beer Seller, the private wholesaler.

There is a reprieve, however, for Gibbs Mew's famous Bishop's Tipple and Salisbury Best Bitter brands which Enterprise has pledged to keep.

Enterprise has emerged as one of the most aggressive pub operators in the country, buying John Labatt's British pub interests and Discovery Inns, the South-west pub group, since it floated on the stock market in 1996. The purchase of Gibbs Mew takes its estate to 1,500 pubs yet he deal does not mark the end of its acquisition spree. Ted Tuppen, chief executive of Enterprise Inns, said yesterday: "This fits in perfectly with our existing portfolio of pubs. I have not lost my appetite for more deals."

Gibbs Mew has 310 pubs, mainly around the south of England. Enterprise plans to restructure the group, add its 27 managed pubs to its tenanted estate. The group should also raise around pounds 20m from selling up to 30 of Gibbs Mew's worst-performing pubs, its brewery site at Salisbury and the wholesaling business.

More than a half of Gibbs Mew's shareholders have already accepted the offer.