Greene King buys New Century Inns

November 14, 2007: Greene King has acquired New Century Inns (NCI) from existing management and staff for a total consideration, including debt, of £32.6 million.

Greene King will finance the deal from existing debt facilities and is expected to be earnings enhancing in the first full year of ownership. The acquisition completed yesterday.

NCI consists of 49 high-quality tenanted and leased pubs, of which 48 are freehold. In the 12 months to October 2007 NCI generated a run-rate EBITDA (earnings before interest, taxes, depreciation, and amortisation) of £3m.

The pubs are located in Northumberland, County Durham, Yorkshire and Derbyshire, and augment Greene King's previous Laurel neighbourhood estate and Hardys & Hansons acquisitions in the North and North East.

Greene King also sees the acquisition as a base from which to acquire further freehold pub assets in the North, as well as further distribution opportunities for Greene King's core ale brands — IPA, Abbot Ale and Old Speckled Hen.

Rooney Anand, chief executive of Greene King, said: "New Century Inns' pubs are located across the North and North East, areas where we are keen to grow our presence. The licensees at New Century Inns will benefit strongly from having access to a flexible range of agreements, an attractive product range and supportive management style."

Alistair Arkley, chairman of New Century Inns, added: "We had reached a point where further significant acquisitions were needed to scale the business up to the next level and we took the decision that the best interests of the shareholders and licensees at New Century Inns were served by joining a larger organisation such as Greene King. We look forward to seeing the pubs develop under Greene King's excellent stewardship."

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