Heineken’s pub business is nearing a deal to acquire around 300 venues from Stonegate, the UK’s largest pub group, in a transaction reportedly worth about £300m.

The Times reported that the potential sale forms part of Stonegate’s plans to dispose of more than 1,000 venues from its £1bn-plus Platinum portfolio as it seeks to reduce its debt burden. The group has previously said options for the portfolio included a full or partial sale or refinancing, with other potential bidders also reported to be interested, including private equity Terra Firma and Bain Capital, as well as activist investor Elliott Advisers.

Heineken’s Stars Pubs & Bars operates around 2,350 pubs in the UK, while Stonegate has an estate of roughly 4,400 venues, including Slug & Lettuce and Be At One. Stonegate has more than £3bn of debt, largely inherited through its £3bn acquisition of EI Group, and is working to reduce borrowings ahead of scheduled repayments through to 2029.

Stonegate was founded in 2010, when private equity firm TDR Capital acquired 333 pubs from Mitchells & Butlers and created the business.

The company, which is based in Solihull, West Midlands, has expanded significantly through acquisitions, and is still backed by TDR, but it reported a £214m loss last year despite revenue rising to £1.75bn. CEO David McDowall is overseeing a transformation strategy as the business continues to sell assets to raise funds and strengthen its balance sheet.

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