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Shepherd Neame Ltd (SHEP)

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Friday 08 May, 2009

Shepherd Neame Ltd

Acquisition

RNS Number : 9151R
Shepherd Neame Limited
08 May 2009
 

 08 May 2009

Shepherd Neame Limited 
('Shepherd Neame' or 'the Company')

Acquisition of 13 pubs from Punch Taverns

 

Shepherd Neame today announces an agreement to purchase 13 freehold pubs and associated pub-specific assets from Punch Taverns PLC ('Punch Taverns'), for a total consideration of £14.86 million in cashThe transaction is expected to complete on 26th May 2009

These high quality pubs are all located in South East of England and strengthen the Company's footprint particularly in Greater London and Surrey.  The pubs have strong food and drink sales, are well maintained and are in good locations.  

There are three managed houses and ten leased pubs.  This brings Shepherd Neame's total estate to 378 pubs comprising 49 managed pubs and 329 tenanted and leased pubs. 

The acquisition is expected to generate in excess of £1.9 million of EBITDA (from both pub operations and own-brewed barrelage) in the first full financial year to June 2010 with a positive impact on earnings.

The purchase will be financed by a new five year term loan of £15 million arranged by The Royal Bank of Scotland and Lloyds Banking Group. At the same time, the Company's existing £10 million revolving credit facility has been extended from 2012 to 2014.  The pricing of the existing £60 million term loan, maturing in 2026, remains unchanged.  Shepherd Neame retains a strong balance sheet following the acquisition and a robust long term financing package.  

This acquisition follows the recent Central London purchases of the Jamaica Wine House and the Westminster Arms, with disposals year to date totalling £7.2 million of gross proceeds.  Shepherd Neame's strategy will be to continue to drive the overall quality of the estate through selective acquisitions and disposal of low yielding pubs and unlicensed properties.

Commenting on the acquisition, Jonathan NeameChief Executivesaid: 'This is an excellent opportunity to acquire a package of high quality individual pubs within our core trading area. The acquisition is in line with our strategy and will further improve the quality of our pub estate.'

-Ends-


For further information, please contact: 

Jonathan Neame, Chief Executive 
Shepherd Neame Limited            Tel: 01795 532 206


James Mitford                            
JPMorgan Cazenove                   Tel: 0207 588 2828


Deborah Walter / Clotilde Gros
Kreab Gavin Anderson                Tel: 020 7554 1400


Regional and Trade Media Contact: 
Pip Clarkson / John Humphreys 
Edwards Harvey Associates         Tel: 01622 604 600



The Directors of Shepherd Neame Limited take responsibility for this announcement.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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