(Alliance News) - London-based pub operator Fuller, Smith & Turner PLC on Wednesday said it has agreed a deal to acquire Cotswold Inns & Hotels Ltd for GBP40 million.
Worcestershire-based firm operates hotels and country inns in the Cotswolds, a popular British tourist destination known for its rolling hills.
Fuller said: "The acquisition comprises a collection of seven high-quality, freehold country inns and hotels and eight freehold staff cottages in the Cotswolds, together with two vibrant leasehold bars in Birmingham’s city centre. It is envisaged that all employees will transfer with the acquisition. An eighth hotel (The Broadway Hotel) does not form part of the acquisition and is being retained by the current owners."
In the year ended September 30, 2018, the properties which form part of the acquisition generated revenue of GBP17.5 million and had a gross asset value of GBP31.5 million, Fuller added.
Fuller Chief Executive Simon Emeny said: “The inns and hotels being acquired are all iconic, character properties in sought-after locations in the Cotswolds. They will further enhance our existing portfolio of premium hotel accommodation, adding 201 stylish bedrooms.
"We expect to realise further benefits from bringing the properties into Fuller’s and for the acquisition to be earnings accretive in the first year."
The deal is expected to be completed on October 31.
Shares in Fuller were 1.5% lower at 1,020.00 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Fuller Smith & Turner (FSTA)