Deutsche Bank, owner of Orchid after a refinancing, is reported to be expecting first round offers in the region of £250 million in the next few days, with six or more prospective buyers in the running.
Orchid runs over 220 pubs under brands including Pizza Kitchen and Bar, All Inns, and Great British Carveries. It has been operating profitably and successfully – hence the level of interest and price.
Prospective buyers are said to include Mitchell & Butlers, owner of Harvester and primarily interested in Orchid’s food business – Pizza Kitchen and Bar has been a notable success since launch, and is expected to rapidly expand across the UK.
Other trade buyers cited are Greene King and Sprint, but more names could emerge.
It seems likely that both ‘property investment’ companies and private equity have been taking a good look at Orchid, and may emerge as front runners to acquire it.