Pub company Fuller's has exchanged contracts to acquire Cotswold Inns & Hotels for £40m, with the sale expected to complete by the end of the month.
The acquisition comprises seven freehold country inns and hotels, as well as eight freehold staff cottages in the Cotswolds, and two leasehold bars in Birmingham, with all employees expected to transfer with the acquisition. The group said it will be funded from existing banking facilities.
Fuller's chief executive Simon Emeny said: "A number of the sites have further development potential and Cotswold Inns & Hotels benefits from an established function business, spanning both leisure and corporate custom as well as weddings. We expect to realise further benefits from bringing the properties into Fuller's and for the acquisition to be earnings accretive in the first year."
An eighth hotel (the Broadway hotel in Worcestershire) is not included the acquisition and is being retained by the current owners.
Cotswold Inns & Hotels was founded in 1997 by Michael and Pamela Horton. In the financial year ended 30 September 2018, the properties being acquired generated revenue of £17.5m and site earnings before interest, tax, depreciation and amortisation (EBITDA) of £3.4m, with a gross asset value of £31.5m.