Greene King plc has agreed a takeover deal for The Belhaven Group plc, which values Belhaven at £187m.

In a statement to the market today, the two brewers said that that they have reached agreement on the terms of a recommended cash offer of 625 pence per Belhaven Share. The Offer will be for the entire issued and to be issued share capital of Belhaven not already owned by the Greene King Group.

Greene King said it believes that the acquisition of Belhaven not only represents an opportunity to maintain and develop the existing strengths of Belhaven as part of the enlarged Greene King Group, but also a unique opportunity to achieve instant scale in a market in which it has little presence currently.

Belhaven is the largest independent brewer in Scotland.

Rooney Anand, CEO of Greene King, said: "This is a full and fair offer for Belhaven, a business that we have long admired for the strength of its pubs, brands and people. It is a unique opportunity for us to gain immediate scale in the important Scottish market. The offer is consistent with our strategy to deliver shareholder value by augmenting our organic growth with selective acquisitions that improve the overall quality of the group.

"We are both integrated operators with proud histories and our businesses complement each other well. Belhaven will retain everything at the heart of its success, including its name, its brands, and its brewery, but will also benefit from being part of a larger group opening up new markets for its products."

Stuart Ross, chief executive of Belhaven, said: "Belhaven has achieved 15 years of unbroken growth, a record of which we are very proud. Today's cash offer reflects the quality of our business and our Board unanimously recommends that it is in the best interests of our shareholders.

"We believe that Greene King is the ideal partner for Belhaven. It is a hand in glove fit. The commercial models of the two companies are almost identical and we share the same ideals about the value of people, brands and heritage.

"In Scotland, we can look forward positively to the future and we are confident that our assets, including our people, will make a meaningful contribution to the future growth and prosperity of the enlarged group."