Greene King makes Northern acquisition

PUB chain Greene King has bought Billingham-based New Century
Inns (NCI) in a £32.6m deal.

The Teesside brewery has 49 tenanted and leased pubs across
Yorkshire, Northumberland, and County Durham. In the 12 months to
October 2007, NCI generated a run-rate EBITDA of £3m.

The take over complements Greene King's previous Laurel
neighbourhood estate and Hardys & Hansons acquisitions in the
North and North East.

It said that the acquisition will provide further distribution
opportunities for Greene King's core ale brands – Greene King
IPA, Abbot Ale and Old Speckled Hen.

Rooney Anand, chief executive of Greene King, said:

“New Century Inns' pubs are located across the North
and North East, areas where we are keen to grow our presence.

“The licensees at New Century Inns will benefit strongly
from having access to a flexible range of agreements, attractive
product range and supportive management style.”

Alistair Arkley, chairman of New Century Inns, said that NCI had
reached a point where further significant acquisitions were needed
to scale the business up to the next level.

“We took the decision that the best interests of the
shareholders and licensees at New Century Inns were served by
joining a larger organisation such as Greene King,” he
added.

“We look forward to seeing the pubs develop under Greene
King's excellent stewardship.”