Fuller's snaps up Punch pubs in £21.1m deal

Brewer and pub operator Fuller's has paid Punch Taverns £21.1m for six Spirit Group pubs in central London, including the Red Lion in Westminster, a famous watering hole for MPs.

The deal, expected to be completed by 6 April, covers the Scarsdale in Kensington, the Red Lion on Parliament Street, the Queen's Head on Brook Green, the Hereford in South Kensington, Ye Olde Mitre in Hatton Garden and the Swan on Bayswater Road.

The purchase of the freehold pubs brings Fuller's managed estate to 162, and an overall estate of 365 pubs and hotels.

Fuller's chairman Michael Turner expressed his delight at the purchase of "six wonderful pubs", right in the company's heartland of central London.

"These are exceptional quality assets that fit well into our existing portfolio and we will move sympathetically to fold each pub's unique character and heritage into Fuller's," he said.

"We continue to build our business for the long term and hope existing and new customers will come and enjoy these pubs for many years."

Punch chief executive Giles Thorley said: "This transaction is in line with our stated strategy of increasing free cash flow and reducing the overall level of our debt, whilst seeking to maintain investment in our high-quality pub estate."

The sale came in the week Punch put 19 Spirit pubs on the market via property agent Christie & Co.

Punch solicits offers for any of its pubs>>

Punch Taverns considers selling more pubs after strong demand>>

Recession fails to dent Fuller's acquisition plans>>

Fuller's "well placed" to deal with UK recession>>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs.