Greene King pays £5m for Punch pubs

11 June 2010
Greene King pays £5m for Punch pubs

Greene King has bought four pub-restaurants from Punch Taverns for £5.3m.

The food-led sites are in Aberdeen, Northampton and Nottingham.

The deal takes the total number of freehold pubs Greene King has bought since a £100m rights issue it made last year to 34.

The latest pubs have combined earnings before interest, tax, depreciation and amortisation (EBITDA) of £342,000. Greene King said it expected the sites to trade at around seven times EBITDA.

Rooney Anand, chief executive of Greene King, said: "We are very pleased to have acquired these sites. They are freehold retail sites in great locations currently trading below their potential. We expect to convert the sites into our market-leading pub-restaurant brands, Hungry Horse and Eating Inn, further strengthening our position in the UK eating-out market".

Punch has sold 23 pubs to Greene King in the past 12 months for a total of £51.6m.

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By Neil Gerrard

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