Fuller, Smith & Turner Plc has agreed to acquire six freehold London pubs from Punch Taverns Plc, for £21.1 million in cash. The acquisition will be financed from existing facilities and is expected to complete by 6 April.

Fuller, Smith & Turner Plc has agreed to acquire six freehold London pubs from Punch Taverns Plc, for £21.1 million in cash. The acquisition will be financed from existing facilities and is expected to complete by 6 April.

The six pubs are The Scarsdale in Kensington, The Red Lion on Parliament
Street, The Queen’s Head on Brook Green, The Hereford in South Kensington, Ye
Olde Mitre in Hatton Garden and The Swan on Bayswater Road, which overlooks
Hyde Park.

In the 12 months to August 2008, the pubs generated pre-tax earnings of £2.5 million. The acquisition is expected to have a positive impact on earnings on completion.

Michael Turner, Fuller’s chairman, said: “I am delighted that Fuller’s is able to acquire these six wonderful pubs, right in our heartland of central London. These are exceptional-quality assets that fit well into our existing portfolio, and we will move sympathetically to fold each pub’s unique character and heritage into Fuller’s.”

Fuller’s reported a robust trading performance for the six months ended 27 September 2008, with revenue up one per cent to £94.4 million. Turner commented: “We are in a strong financial position, owning the freeholds of the majority of our pubs, with prudent gearing and substantial headroom on our committed bank facilities. Combined with our excellent cash flow generation and an experienced and talented management team, we are confident that our strategy places us well for the future.”