10th Jun 2014 09:38
(An article published at 0829 BST misspelled Bridport. The correct version follows.)
LONDON (Alliance News) - London brewer and pub company Fuller, Smith & Turner PLC Tuesday said it has bought a 51% stake in The Stable Pizza & Cider Ltd, a craft cider and pizza restaurant business, for GBP7.3 million, as well as the freehold of The Bull Hotel in Dorset.
Last week, the Chiswick-based brewer of London Pride reported higher profits and revenues for its most recent financial year, on the back of strong growth in food and accommodation sales, as its managed pubs and hotels business continued to drive profits in the business.
The company continues to pump money into the business, with its managed pubs divisions having been the focus of investment in recent years. Chief Executive Simon Emeny said last week that the company has now laid down its foundations for long-term growth.
In a statement Tuesday, Fuller, Smith & Turner said it has acquired a majority stake in The Stable Pizza & Cider business, founded and led by entrepreneurs Richard and Nikki Cooper. The new business currently has six sites across the South West of England, specialising in gourmet pizzas and a range of 50 different craft ciders. It has restaurants in Fistral Beach, Weymouth, Bristol, Bridport, Bath and Poole.
The company said it plans to expand the business further in the South of England.
"Fuller's investment in the company will allow the Coopers to realise their expansion plans, and the business will still run under their leadership," the company said in a statement.
As part of partnership, Fuller's said it will also acquire the freehold of The Bull Hotel in Bridport, Dorset. The hotel, which has 19 boutique bedrooms, had a stable at the rear, which became the site of the first pizza and cider restaurant.
Fuller, Smith & Turner said it is investing GBP7.3 million for the 51% shareholding, as well as the freehold of The Bull Hotel, and said that as part of the deal, there is an option to increase its shareholding in the business in the future.
"The Stable has a clear brand proposition which is characterful and distinctive and provides a unique and complementary addition to Fuller's growing premium food and drink portfolio," the company said.
The company said it expects the acquisition to be "broadly earnings neutral" in the first year.
Fuller, Smith & Turner shares were down 0.4% at 963.50 pence early Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Fuller Smith & Turner