Dublin pub groups combine for group worth €50m in sales

Two of Dublin’s leading bar and restaurant groups are to merge to form a near €50m revenue-generating business with control of many of the capital’s leading hospitality venues.

The Frank Gleeson-controlled Mercantile Group is merging with the Capital Bars Group, with the new entity to go under the Mercantile name.

The move will bring under one ownership structure the likes of Whelan’s, The Green Hen, Pichet, The Mercantile Hotel, Cafe en Seine, Howl at the Moon, and The George.

The enlarged business will be led by Mr Gleeson, while Dublin-based private investment firm, Danu Investment Partners and US investor group EMI-MR Investment will hold significant stakes.

The latter two businesses bought Capital Bars for €15m in late 2014.

Danu Investment Partners is headed by Setanta Sports founders Leonard Ryan and Michael O’Rourke.

The business also owns the UK franchise rights for the US-founded Smith & Wollensky chain of steakhouse restaurants.

The new group is promising a “significant” capital expenditure programme, which will upgrade existing venues and add more to the portfolio.

Mercantile is due to open a new restaurant/bar this spring in the Powerscourt Town House in central Dublin.

“This is a transformational deal for our businesses and will position the Mercantile Group at the forefront of the sector in Dublin.

“We have ambitious plans to grow the business further, both in Dublin and internationally, and we are looking to a very exciting period ahead,” said Mr Gleeson.

The new business will employ around 600 people and generate annual revenues of between €40m and €50m.