Punch Taverns has announced that it has completed the sale of Old Orleans, the bar and restaurant chain, to Regent Inns for £26m. Regents announced last week it had received approval for the deal from its shareholders at an Extraordinary General Meeting. The deal is in line with Regent's aim to add a third arm to its business and will be funded in part by increasing the group's existing debt facility from £100m to £116m. Bob Ivell, executive chairman at Regent and former chairman at S&N Retail, said: “We believe that Old Orleans will benefit from being a core part of the Company and our experienced retailing focus. “We have previous experience of successfully managing the Old Orleans outlets and are confident that we can enhance the operational performance through carefully targeted capital investment, improved food and entertainment offerings and marketing.” Regent said that it would invest in marketing the brand, building customer awareness in many of the outlets in high footfall leisure developments and high street locations. Punch has agreed a six-month temporary service agreement with Regent to ensure a smooth integration. Old Orleans comprises a portfolio of 31 themed outlets across Great Britain, of which 29 are branded as Old Orleans and two are branded as Quincey's. Three outlets are freehold, one is long leasehold and 27 are short leasehold. Each outlet has between 200 and 250 covers. Steve Rogers, previously operations director of Spirit's Two For One, currently runs the business. For the 6 months ended 18 February 2006, the 31 outlets generated turnover of £17.5m and outlet underlying profit (ebitda) of £2.3m. Regent said that it expected the deal to be marginally earnings dilutive to the end of the current financial year, in June 2007, but earnings enhancing in the following year.