14th Nov 2007 07:02
Greene King PLC14 November 2007 GREENE KING plc ACQUISITION OF NEW CENTURY INNS November 14th, 2007 - Greene King is pleased to announce the acquisition of NewCentury Inns (NCI) from existing management and staff for a total consideration,including debt, of £32.6m. The consideration will be financed from existing debtfacilities and is expected to be earnings enhancing in the first full year ofownership. The acquisition completed yesterday. NCI consists of 49 high quality tenanted and leased pubs, of which 48 arefreehold. In the 12 months to October 2007, NCI generated a run-rate EBITDA of£3m. The pubs are located in Northumberland, County Durham, Yorkshire andDerbyshire and augment Greene King's previous Laurel neighbourhood estate andHardys & Hansons acquisitions in the North and North East, increasing densityand creating a strong strategic bridgehead for future growth in the region. There are a number of opportunities for value creation at NCI including theintroduction of Greene King's systems, increased targeted capital investmentinto the estate, selected conversions from tenancy to lease and both overheadand purchasing synergies. Not only will this acquisition provide Greene Kingwith a base from which to acquire further freehold pub assets in the North, butit also provides further distribution opportunities for Greene King's core alebrands - Greene King IPA, Abbot Ale and Old Speckled Hen. Commenting on the transaction, Rooney Anand, Chief Executive of Greene King,said, "New Century Inns' pubs are located across the North and North East, areaswhere we are keen to grow our presence. The licensees at New Century Inns willbenefit strongly from having access to a flexible range of agreements,attractive product range and supportive management style." Alistair Arkley, Chairman of New Century Inns, added "we had reached a pointwhere further significant acquisitions were needed to scale the business up tothe next level and we took the decision that the best interests of theshareholders and licensees at New Century Inns were served by joining a largerorganisation such as Greene King. We look forward to seeing the pubs developunder Greene King's excellent stewardship." For further information: Greene King plc Rooney Anand, Chief Executive Tel: 01284 763222 Financial Dynamics Ben Foster Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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