Ultimate acquires Bel and the Dragon

Ultimate Leisure, the Newcastle-based late-night operator, has acquired Bel and the Dragon, the pub restaurant business, from Gourmet Holdings for £8.75m.

The deal, which is payable by cash and funded from current financial resources, is Ultimate's first foray into food-led operations.

The company said that is was currently looking at other acquisitions, with further deals regarding food-led operations expected to follow.

Bel and the Dragon is an attractive business and the acquisition of these four sites would represent important progress in our stated aim of developing the food-led side of our business.​Mark Jones, chairman of Ultimate.

Mark Jones, chairman of Ultimate, said: "Bel and the Dragon is an attractive business and the acquisition of these four sites would represent important progress in our stated aim of developing the food-led side of our business."​

Ultimate raised £25m of equity funding via a shares placing in January and said it would eventually have £75m available to expand its business to 100 sites.

Gourmet placed Bel and the Dragon, which consists of three freehold properties and one leasehold all based in the Home Counties, back on the market at the end of February, after exclusive talks with Cross Oak Inns, the EIS-backed pub group led by Peter Eyles, ended.

For the year to 25 June 20006, the sites delivered sales of £4.5m and ebitda of £0.85m. For the year to 24 June 2007, the outlets are expected to report ebitda of £1m.

The sites had a book value of £10.8m as at 7 January 2007.

It is understood that the sale of the four-site package could eventually lead to the break up of Gourmet Holdings, with the further sale of its remaining four-strong French brasserie concept Richoux.

The group said that whilst it was actively seeking sites to expand the Richoux brand it was also reviewing its strategic options.

Coffer Corporate Leisure handled the sale of Bel and the Dragon on behalf of Gourmet Holdings.