Capital Pub Company has splashed out £5.75m on two freehold pubs in London owned by Puzzle Pub Company.
The pubs, in Earlsfield in the southwest of the capital and Hammersmith in the west, generated combined turnover of £1.8m on an annualised basis for the year to the end of August.
Under the terms of the deal, announced today, Capital will pay £5.5m in cash at completion and a further £250,000 of deferred cash consideration which is payable 12 months later, conditional on the performance of one of the pubs in that period.
To finance the deal, Capital secured an additional £8m of bank funding with Allied Irish Bank over 10 years.
The company, which floated on the Alternative Investment Market in June, now has 26 pubs in its estate, all but three of which are freehold.
David Bruce, chief executive of Capital, said: "These Puzzle pubs are exactly the type of pubs that we seek to buy.
"They are freehold and have their own character and local customer base. The acquisition of these pubs will complement our existing portfolio perfectly."
Property agent Coffer Corporate Leisure acted for Puzzle Pubs on the sale.
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By Daniel Thomas
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