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LONDON (Alliance News) - Young & Co's Brewery PLC on Wednesday said it bought Redcomb Pubs Ltd for GBP34 million on a cash-free and debt-free basis.
Redcomb owns and operates 15 pubs in "prime locations", such as Islington, Greenwich, East Dulwich and Paddington Basin in London. It currently generates run-rate earnings before interest, taxes, depreciation and amortisation of GBP4 million.
Young's said it is planning investments in the newly acquired pubs over the next two years which will "naturally have a short-term impact on profitability but should have a positive impact thereafter".
"The pubs will complement the Young's managed house estate both in and around London, build upon a growing presence in the South West and further enhance the Young's brand," the company said.
After the acquisition, financed through the company's existing debt facilities, Young's now owns 200 pubs. With 70 tenanted pubs in its Ram Pub Company, the total Young's pub estate is 270 pubs.
Young's shares were trading up 3.6% at 1,527.50 pence each.