Wolves pounces on English Country Inns

Wolverhampton & Dudley Breweries (W&DB) has agreed a cash offer for the 14-strong English Country Inns (ECI) business.

The boards of both companies are recommending the 128 pence a share bid, valuing the business at £13.65m - or just under a million pounds a pub. W&DB said the deal fits its strategy of expanding where suitable opportunities occur.

The food-led ECI pubs are said to be a good geographic fit with the Pathfinder Pubs managed division, offering operational benefits through economies of scale and opportunities for cost savings.

Ralph Findlay (pictured)​, W&DB chief executive, said the deal "reinforces our position as a leading operator of high quality pubs across the country.

"Consolidation continues to be a feature of the industry and this acquisition provides a good return for W&DB shareholders and new opportunities for ECI employees."

Roger Hunt, chairman of ECI said: "The offer represents good value to our shareholders. ECI has acquired a strong portfolio of public houses over the last four years and the offer is fair reflection of the value that has been created in our properties during this time.

"The offer also represents an excellent opportunity for ECI employees to work for a leading and well-established company within the public house sector."

The ECI business was set up in 2001 under an Enterprise Investment Scheme, which allows small investors to back private companies. The deal allows the orginal shareholders to realise their investment.