New Century staff share £19m payout

Directors and staff at New Century Inns will share about £19m after the sale of the company's 49 pubs to Greene King for £32.6m.

The company's three directors own just over 90% of the company but 10 or so members of the company's 14-strong staff will share the rest, with many earning six-figure bonuses.

New Century's 49 pubs are high quality, producing about £60,000 per annum in Ebitda. Chairman Alistair Arkley said the estate would benefit from between £1m and £2m of investment, which would boost earnings further.

Greene King won a "very competitive auction" with three companies bidding at the same price - the auction was concluded in little less than a month after the company came on the market.

The New Century estate is located between Sheffield and Newcastle, and plugs a gap for Greene King between its Hardys and Hansons estate in the Midlands and its Scottish business, Belhaven.

Arkley said: "We'd begun to realise that substantial investment in the estate was needed to keep pace with retail standards.

"We just didn't have deep enough resources. It seemed to make sense to sell to someone with deeper pockets - it's a good move for our tenants and for our staff."

Greene King chief executive Rooney Anand said: "New Century Inns pubs are located across the north and north-east - areas where we're keen to grow our presence.

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

Arkley will continue as chairman of Passionate Pub Company and Chameleon Pubs.

He is also chairman of Steelite International, and works as a "business angel" supporting and advising new businesses.

PC Hansen acted for New Century Inns.