Greene King buys four pubs from Punch Taverns

Greene King has acquired four pub restaurants from Punch Taverns for £5.3m.

The pubs are "highly attractive, food-led, destination sites" in Aberdeen, Northampton and Nottingham.

The Suffolk brewer and operator said the sites met its strategic criteria set out at the time of its rights issue. The deal is set to be completed by 8 July.

The sites generated Earnings Before Interest, Tax, Depreciation and Amoritisation (EBITDA) of £342,000.

After investment in the sites, Greene King expects the sites to return to trading levels of 7 times EBITDA.

Following the acquisition, Greene King will have invested £100m of its rights issue in acquiring and improving 34 pubs.

Greene King has now bought 23 pubs from Punch in th last 12 months for £51.6m — the book value stod at £52.7m.

"We are very pleased to have acquired these sites," said chief executive Ronney Anand. "They are freehold retail sites in great locations currently trading below their potential. We expect to convert the sites into our market-leading pub restaurant brands, Hungry Horse and Eating Inn, further strengthening our position in the UK eating out market."

Punch said funds would be used to reduce debt and reinvest in its estate.