Morland in £25.1m pub spending spree
Morland & Co, the Abingdon-based regional brewer and pub operator, is to pay £15.8m for the 13-strong Unicorn Inns pub chain. And, in a separate deal, it is to buy 10 managed pubs on the South Coast for £9.3m.
The friendly takeover of Unicorn knocks out of contention the £8.1m hostile bid by Regent Inns. The price offered by Morland, equivalent to more than £1.2m per pub, is considered exceptional by most commentators.
In the 16 weeks to 16 July, Unicorn stated its pre-tax profits were £192,000. On this basis, Morland's offer values Unicorn at more than 25 times earnings.
The key assets of Unicorn are its seven Newt & Cucumber outlets, which target a city centre trade, and the Wig & Pen concept, which has just made its debut in Bristol.
Most of the properties are leaseholds, with just five freeholds, including the only tenancy. Construction work is underway on a building in Swansea, due to open in late October, and agreements to lease three more sites have been signed.
Morland said the acquisitions, to be funded through a £19.9m offer of new shares, would increase its managed estate to 97 outlets. Rapid expansion of the Newt & Cucumber concept is expected as Morland has declared that extending its managed house division is a strategic priority.
The 10 urban pubs in the second acquisition are privately owned. In the year to 31 March 1995, turnover reached £5.2m and operating profit was £695,000.
