FULLER’S has swooped to buy ten “outstanding” pubs in a major deal with rival operator Stonegate Group.
The London-based brewer has exchanged contracts to snap up the sites, with nine located in prime London postcodes and one in the centre of Bath.
The deal, worth £35.25million before fees and taxes, will see Fuller’s take on four freehold pubs and six leasehold properties.
Bosses say the purchase price represents 8.4 times the acquired sites’ earnings, and the whole transaction will be funded from Fuller’s existing debt facilities.
Among the well-known boozers changing hands are The Shipwrights Arms near London Bridge, The Duchess next to Selfridges, and The Blue Anchor in Hammersmith.
The four freehold pubs are set to complete this month, while the six leasehold sites will transfer on an asset-by-asset basis as they still need landlords’ consent.
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Simon Emeny, Fuller’s executive chairman, said: “I am delighted to be announcing this transaction today. We have always maintained a disciplined policy of only acquiring the right assets at the right price – and they must always be estate enhancing.”
He added the new pubs would be a good fit for the firm’s existing operations, saying: “This collection of 10 outstanding pubs, located in geographies where we already have a strong presence and knowledge of the customer, are a perfect complement to our existing estate.”
Emeny said the acquisitions were expected to boost earnings further, adding: “They will provide additional momentum to the strong earnings growth being delivered by our core business.”
He confirmed shareholders and customers would get more details on the deal when the firm reveals its interim results later this year, saying: “We will update the market further at our interim results presentation later in the year.”
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Fuller’s currently runs 194 managed pubs and hotels with more than 1,000 bedrooms between them, plus a further 154 tenanted inns dotted across the southern half of England.
The brewing giant, which has been serving pints for more than 180 years, employs over 5,000 staff across its estate.