Greene King strengthens its Northern holdings
Suffolk-based brewer and pub operator, Greene King has strengthened its position in the North with the £32.6m acquisition of 49 tenanted pubs in the region.
Greene King said that it has acquired New Century Inns (NCI), and its associated pubs in Northumberland, County Durham, Yorkshire and Derbyshire, for a cash consideration of £32.6m. The brewer said that the purchase consists of 49 high quality tenanted and leased pubs, that represent a number of opportunities for value creation, including the introduction of Greene King's systems, increased targeted capital investment into the estate, selected conversions from tenancy to lease and both overhead and purchasing synergies. It added that it expected the pubs, which generated EBITDA of £3m for the year to October, to be earnings accretive in the first full year of ownership. The move further strengthens the company's holdings in the North and North East, providing a base from which to acquire further freehold pub assets in the region and distribution opportunities for Greene King's core ale brands, it said. "New Century Inns' pubs are located across the North and North East, areas where we are keen to grow our presence," said Greene King's CEO, Rooney Anand. "The licensees at New Century Inns will benefit strongly from having access to a flexible range of agreements, attractive product range and supportive management style." Shares in the company have seen a marginal gain, growing 8.5p to 876p.