Greene King moves into W&DB territory with Hardys purchase

Greene King has agreed to buy Nottingham-based brewer Hardys & Hansons (H&H) for £270m.

The deal brings the number of pubs Greene King owns close to 2,700 and crucially brings its estate closer to the territory dominated by arch rivals Wolverhampton & Dudley Breweries, which was also believed to be in the race to acquire H&H.

H&H owns 268 pubs located throughout the East Midlands, with 83 managed houses and 185 tenanted sites.

Announcing the agreed takeover, Rooney Anand, chief executive of Greene King said: "We believe this is a fair offer for Hardys & Hansons, a company we have long admired for its high quality estate, strong management team, dedicated staff and heritage."

The offer was consistent with Greene King's strategy to deliver shareholder value by "augmenting our organic growth with selective acquisitions that improve the overall quality of the group", he added.

James Muir, chairman of Hardys & Hansons, said the offer "represents excellent value for our shareholders and Greene King represents an excellent home for the business."

According to a source close to deal, the board directors and family shareholders of H&H "couldn't believe they could have gone to a better home. They saw that Greene King shared the same values as themselves".

Speculation surrounding Hardys & Hansons has raged for some months and at the beginning of last week the group's share price rose sharply, forcing the brewer to announce to the Stock Exchange it had received a number of approaches.

Greene King's shares were trading at 748.5p, up 24.5p, following the announcement.