London Town spends £4.3m on 60 leasehold pubs

Pub company London Town has acquired managed pub operator GRS Inns for £4.31m in a takeover that sees the creation of a 282-strong group.

The acquisition adds 60 unbranded leasehold pubs operated by GRS to the existing 222-strong tenanted London Town portfolio.

GRS shareholders now own 13.5% of the enlarged group's equity.

It also sees a major upheaval of the board at London Town, with Richard Gundry, managing director of GRS, appointed as chief executive of the enlarged group.

John Sands, chairman of GRS, will become executive chairman while Andrew Wilson, chairman of London Town, stays on as non-executive director.

Sands said: "I am delighted to have joined the board of London Town following the acquisition of GRS Inns. The combination creates a dynamic estate of managed and tenanted pubs and injects a new managed house skill base to the London Town business."

Alternative Investment Market listed London Town was previously a property developer but turned its focus to buying pubs in November 2006.

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By Christopher Walton