UK: Greene King completes Laurel purchase
Greene King has completed the acquisition of Laurel's Neighbourhood Business. The purchase includes 432 community and traditional town pubs.
Laurel's Neighbourhood Business is primarily focused on community and traditional town locations, generating strong and consistent cashflow. The Neighbourhood Estate has also benefited from extensive investment, dating back to its period under Whitbread's ownership.
The total consideration remains unchanged at £654m, which is being met through a new £1.2bln debt facility. Greene King expects the acquisition to be significantly earnings-enhancing in the first full year of ownership (May 2006) as well as exceeding its cost of capital.
In a statement, Greene King said that the acquisition represents an excellent move that complements its integrated model. Adding a significant and high-quality managed estate to its existing managed retail division will benefit all three of Greene King's trading divisions, it added.
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