Fuller, Smith & Turner (LSE:FSTA) has exchanged contracts to acquire 10 pubs for a combined £35.25 million before fees and taxes, buying from pub operator Stonegate Group and, in a separate simultaneous deal, from an institutional property investment company.
Nine of the sites sit in prime London postcodes, with the tenth in central Bath.
The purchase price equates to 8.4 times acquired site EBITDA and will be funded from Fuller's existing debt facilities.
The deal covers four freehold pubs, expected to complete in September, and six leasehold sites that will complete individually as landlords' consent is obtained.
Executive Chairman Simon Emeny named three of the additions: The Shipwrights Arms in London Bridge, The Duchess next to Selfridges, and The Blue Anchor in Hammersmith.
"We have always maintained a disciplined policy of only acquiring the right assets at the right price, and they must always be estate enhancing", Emeny said.
He said the pubs sit in geographies where the group already has a strong presence and customer knowledge, and should add momentum to earnings growth in the core business.
Fuller's said it would update the market further at its interim results presentation later in the year.
News Intelligence what this means for the company
Fuller's has exchanged contracts to acquire 10 pubs—nine in prime London postcodes and one in Bath—for £35.25m, funded from existing debt facilities at 8.4x site EBITDA. The deal adds to a company that reported adjusted profit before tax up 28% to £34.6m in its last full year, and management frames the acquisitions as earnings-accretive additions in geographies where Fuller's already has established presence and customer knowledge.
The acquisition is disciplined by Fuller's stated criteria—right assets at right price, estate-enhancing—and sits in markets where the group already operates, reducing execution risk. At 8.4x EBITDA the valuation appears measured, though the deal's impact on leverage and near-term earnings will be clarified at the half-year results on 11 November.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
