Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Greene King buys restaurant firm Cloverleaf for £56m

31 January 2011 by
Greene King buys restaurant firm Cloverleaf for £56m

Greene King has bought Cloverleaf Restaurants for £56m.

Cloverleaf operates large, freehold pub restaurants in the North of England and Midlands. Greene King said the acquisition of the chain, which is performing strongly in the growing carvery market, would help accelerate its "repositioning toward food-driven retail outlets".

Greene King will have 12 Cloverleaf sites by the end of the financial year, which means the deal is equivalent to 8.7x annualised outlet earnings before interest, tax, depreciation and amortisation (EBITDA). It added that Cloverleaf has a "strong pipeline" of additional sites, with another 10 planned for the next two years. The additional 10 sites are expected to require £25m worth of investment.

Meanwhile Greene King reported in its interim management statement for the 38 weeks to 23 January 2011 that it had seen its continued shift towards food like-for-like sales in its retail division. Like-for-like sales were up 3.9% overall, with budget brand Hungry Horse climbing 10.3% and Scottish business Belhaven up 3.6%. Overall food sales growth in the retail division stood at 8.2%.

The company added that it expected margins for the full year in Greene King Retail to be "slightly ahead" of the previous year.

In its tenanted division, like-for-like EBITDA per pub was up 0.6% and average EBITDA per pub climbed +1.9%.

Greene King reported that trading in the last eight weeks was hit by the December snow, but that January had seen a positive impact thanks to improved conditions.

The brewing company's own-brewed volume fell 3.3% against a UK ale market down by 7.6%.

Take six: green machines >>

Greene King pays £5m for Punch pubs >>

Greene King signs rugby deal >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking