Shepherd Neame Limited Shepherd Neame acquires Village Green Restaurants (4647Q)

TIDMSHEP

RNS Number : 4647Q

Shepherd Neame Limited

29 November 2016

Tuesday 29th November 2016

SHEPHERD NEAME LIMITED ACQUIRES VILLAGE GREEN RESTAURANTS LIMITED

Shepherd Neame, the Kent-based brewer, pub and hotel operator, today announces the acquisition of Village Green Restaurants Limited from Alex and Helen Bensley for a total consideration of GBP11.85m.

Village Green Restaurants Limited operates five freehold pub restaurants in and around Maidstone and Ashford in the company's Kent heartland. All the pub restaurants will be operated under Shepherd Neame's managed pub division. The last audited accounts for the year ending 31 October 2015 for the company showed annual turnover of GBP6.6m and operating profit of GBP0.9m.

These pub restaurants enjoy an excellent reputation for food quality and service. This acquisition is in line with the company's strategy to acquire high quality sites with unique character in landmark or high profile locations and to develop its offer to enhance the customer experience through great fresh food.

At the same time, the company's existing revolving credit facility has been extended by GBP25m to GBP45m taking total committed banking facilities to GBP105m.

Jonathan Neame, Chief Executive of Shepherd Neame said:

"We are delighted to welcome the team from Village Green Restaurants Limited to Shepherd Neame.

"Over recent years we have transformed our pub profile, greatly developed our food offer and enhanced the experience for our customers and this is another important development in our strategy.

"We are hugely impressed by what Alex and Helen and their team have achieved and we look forward to continuing their great work."

Alex Bensley, Chief Executive of Village Green Restaurants said:

"Helen and I are proud of the business we have built and delighted to pass the baton to a local, longstanding family business such as Shepherd Neame."

For further information, please contact:

 
 
 Shepherd Neame Limited 
 Jonathan Neame, Chief Executive        Tel: 01795 
  Mark Rider, Finance and IT Director    532206 
 
   Kreab 
 Christina Clark / Anna Gustafsson      Tel: 020 
                                         7074 1800 
                                         / 07776 171 
                                         210 
 
   Regional and Trade Media Contact: 
 John Humphreys                         Tel: [phone] 
                                         / 07793 294 469 
 

Note: The Directors of Shepherd Neame Limited accept responsibility for this announcement.

NOTES FOR EDITORS

Shepherd Neame is Britain's oldest brewer. Established in 1698 and based in Faversham, Kent it employs around 1,300 people.

The pub restaurants acquired are:

   --     The Oak on the Green, Bearsted 
   --     The Fish on the Green, Bearsted 
   --     The Old Mill, Kennington 
   --     The Chequers on the Green, High Halden 
   --     The Swan and Dog, Great Chart 

The Company retails its own beers, on draught and in bottles, under a range of highly successful brand names, including:

- Spitfire: One of the leading premium bottled ales in the UK with national distribution on draught (4.2% abv) and in bottle (4.5% abv). Spitfire Gold, a golden ale (4.1% abv), was launched to mark the 75th anniversary of the Battle of Britain and Spitfire Lager, the Lager of Britain (4.0% abv) has been launched in 2016.

- Whitstable Bay: This range, sold under the Faversham Steam Brewery brand, includes a Pale Ale on draught (3.9% abv) and in bottle (4% abv), an Organic Ale (4.5% abv), Blonde Lager (4.5% abv),Black Oyster Stout (4.2%) and Red IPA (4.5% abv).

   -      Bishops Finger: Connoisseur premium ale (5.4% abv). 
   -      Master Brew: The 'Original Kentish Ale' is a well-hopped cask ale (3.7% abv). 

The Company also brews lagers under license, including:

- Asahi Super Dry: Japan's number one beer (5% abv), which is produced under an exclusive UK license for brewing, sales and marketing.

- Samuel Adams Boston Lager: Leading US craft lager (4.8% abv) brewed under an exclusive license from the Boston Beer Company. The Company also imports Rebel IPA, a strong hopped US craft beer (6.5% abv) and Angry Orchard, America's No. 1 Hard Cider (5%).

Shepherd Neame sold 246,000 brewers' barrels of beer (71.0 million pints) including 211,000 brewers' barrels of own brewed beer (60.6 million pints) in the last year. The majority of these sales were made in the UK although the Company also exports to more than 35 countries.

At the year end, the Company operated 328 pubs, of which 267 were tenanted or leased, 7 were held as investment properties under commercial free of tie leases, and 54 managed. The pub estate ranges from inns and hotels to destination dining, great traditional and local community pubs.

Shepherd Neame's shares are traded on the ISDX Growth Market. See http://www.isdx.com/ for further information and the current share price.

For further information on the Company, see www.shepherdneame.co.uk.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 29, 2016 11:08 ET (16:08 GMT)