8th May 2009 07:00
08 May 2009
Shepherd Neame Limited ("Shepherd Neame" or "the Company")
Acquisition of 13 pubs from Punch Taverns
Shepherd Neame today announces an agreement to purchase 13 freehold pubs and associated pub-specific assets from Punch Taverns PLC ("Punch Taverns"), for a total consideration of £14.86 million in cash. The transaction is expected to complete on 26th May 2009.
These high quality pubs are all located in South East of England and strengthen the Company's footprint particularly in Greater London and Surrey. The pubs have strong food and drink sales, are well maintained and are in good locations.
There are three managed houses and ten leased pubs. This brings Shepherd Neame's total estate to 378 pubs comprising 49 managed pubs and 329 tenanted and leased pubs.
The acquisition is expected to generate in excess of £1.9 million of EBITDA (from both pub operations and own-brewed barrelage) in the first full financial year to June 2010 with a positive impact on earnings.
The purchase will be financed by a new five year term loan of £15 million arranged by The Royal Bank of Scotland and Lloyds Banking Group. At the same time, the Company's existing £10 million revolving credit facility has been extended from 2012 to 2014. The pricing of the existing £60 million term loan, maturing in 2026, remains unchanged. Shepherd Neame retains a strong balance sheet following the acquisition and a robust long term financing package.
This acquisition follows the recent Central London purchases of the Jamaica Wine House and the Westminster Arms, with disposals year to date totalling £7.2 million of gross proceeds. Shepherd Neame's strategy will be to continue to drive the overall quality of the estate through selective acquisitions and disposal of low yielding pubs and unlicensed properties.
Commenting on the acquisition, Jonathan Neame, Chief Executive, said: "This is an excellent opportunity to acquire a package of high quality individual pubs within our core trading area. The acquisition is in line with our strategy and will further improve the quality of our pub estate."
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For further information, please contact:
Jonathan Neame, Chief Executive Shepherd Neame Limited Tel: 01795 532 206
James Mitford JPMorgan Cazenove Tel: 0207 588 2828
Deborah Walter / Clotilde GrosKreab Gavin Anderson Tel: 020 7554 1400
Regional and Trade Media Contact: Pip Clarkson / John Humphreys Edwards Harvey Associates Tel: 01622 604 600
The Directors of Shepherd Neame Limited take responsibility for this announcement.
Related Shares:
Punch Taverns PLC