Wolverhampton & Dudley Breweries (W&DB) has agreed to take over rival pub company Burtonwood in a £120m deal.
W&DB said the purchase of Burtonwood was consistent with its strategy of expanding where suitable opportunities occurred.
W&DB chief executive Ralph Findlay added: “Burtonwood has an excellent estate of 460 pubs which are a good geographic fit with our existing 1,675 pubs.
“Consolidation and cost pressures continue to be a feature of the industry. Combining these estates represents an attractive opportunity to generate value by strengthening our position as a leading operator of high quality pubs across the country.
“As we integrate the business, we will build on the proven approach of Burtonwood’s management over recent years.”
The group expects the acquisition to be earnings enhancing within its first full year of ownership.
The group announced the acquisition as it published its results for the 12 months to 2 October.
W&DB’s acquisition of another pub group, Wizard Inns, earlier in the year helped boost turnover by 4.7% to £513.7m.
Pre-tax profit was up by 6.3% to £77.7m.
W&DB also said it had revalued its property portfolio, which had resulted in a gain of £169.5m.
References: EGi News 03/12/04
