Scottish & Newcastle has completed the sale of 646 of its managed pubs to Enterprise Inns and Noble House Leisure for a total of £345m.
Enterprise is buying 432 of the pubs for £263.6m, or an average £610,000 each, partly financed by a £66m rights issue.
Noble House Leisure, Robert Breare's acquisition vehicle, is taking control of 214 outlets for £94m, or £439,000 each, via a newly formed special purpose vehicle.
In the 12 months to 1 April 2001 the outlets being sold made a profit, before interest and tax, of £29m and an ebitda of £43m.
Enterprise said its new pubs would be converted to leases and tenancies and should have an annual barrelage of more than 410,000 barrels, with revenues for the group expected to be more than £30m. Under S&N the business generated profit of £23.4m on sales of £127.6m in the year to March 31.
The company said: "The S&N pubs being acquired are of very high quality and can be readily integrated into the existing estate with a minimal increase in overhead."
To pay for the purchase, Enterprise will draw down the additional £260m finance facility agreed when it bought 439 former Whitbread pubs from MGPE. This included a bridging facility of £60m which will be repaid from the net proceeds of the rights issue, Enterprise said.
Enterprise's chief executive, Ted Tuppen, said Enterprise was interested in acquiring 59 managed pubs currently owned by Wolverhampton & Dudley Breweries, which is fighting off a hostile £454m bid from Pubmaster. Enterprise has agreed to purchase these pubs for about £28m if Pubmaster's bid is successful.
Tuppen said: "There are still plenty of acquisition opportunities around and despite spending over £520m on two big deals we continue to have funds available for additional purchases."
S&N's chairman, Brian Stewart, said he expected the balance of the 740 planned disposals announced back in January will be completed "in the near future".
The £243m net proceeds from the disposal, expected to be completed in the week beginning July 1, will be used to reduce borrowings.
The completion of the sale to Enterprise is dependent on approval by Enterprise's shareholders.
Enterprise is buying 432 of the pubs for £263.6m, or an average £610,000 each, partly financed by a £66m rights issue.
Noble House Leisure, Robert Breare's acquisition vehicle, is taking control of 214 outlets for £94m, or £439,000 each, via a newly formed special purpose vehicle.
In the 12 months to 1 April 2001 the outlets being sold made a profit, before interest and tax, of £29m and an ebitda of £43m.
Enterprise said its new pubs would be converted to leases and tenancies and should have an annual barrelage of more than 410,000 barrels, with revenues for the group expected to be more than £30m. Under S&N the business generated profit of £23.4m on sales of £127.6m in the year to March 31.
The company said: "The S&N pubs being acquired are of very high quality and can be readily integrated into the existing estate with a minimal increase in overhead."
To pay for the purchase, Enterprise will draw down the additional £260m finance facility agreed when it bought 439 former Whitbread pubs from MGPE. This included a bridging facility of £60m which will be repaid from the net proceeds of the rights issue, Enterprise said.
Enterprise's chief executive, Ted Tuppen, said Enterprise was interested in acquiring 59 managed pubs currently owned by Wolverhampton & Dudley Breweries, which is fighting off a hostile £454m bid from Pubmaster. Enterprise has agreed to purchase these pubs for about £28m if Pubmaster's bid is successful.
Tuppen said: "There are still plenty of acquisition opportunities around and despite spending over £520m on two big deals we continue to have funds available for additional purchases."
S&N's chairman, Brian Stewart, said he expected the balance of the 740 planned disposals announced back in January will be completed "in the near future".
The £243m net proceeds from the disposal, expected to be completed in the week beginning July 1, will be used to reduce borrowings.
The completion of the sale to Enterprise is dependent on approval by Enterprise's shareholders.
