Greene King Acquire Belhaven for $337

22/08/05 Suffolk-based Greene King has agreed to pay $337m for Belhaven, Scotland's largest independent brewer. Belhaven will keep its name, brands and East Lothian brewery following the 625 pence-per-share deal, which is 16% higher than its Friday closing price.

Greene King, which already owns some of the UK's best-known beers such as Abbot Ale, is to raise £47m through a share placing to help fund the takeover. Belhaven's products include 80 Shilling, Best, and St Andrews Ale.

The news came despite belief from analysts that Greene King may have paid too much for the company considering the smoking ban to be implemented in enclosed public places in Scotland early in 2006. But the company said that they had taken this risk into account with the acquisition. "Greene King has concluded that the Scottish smoking ban due in 2006 may result in a significant reduction in Belhaven's short-term profitability," the English brewer said in a statement.

"We've factored in some of the downside posed by smoking," Greene King Chief Executive Rooney Anand told a conference call. "It is a unique opportunity for us to gain immediate scale in the important Scottish market," he added.

The deal comes a month after Greene King completed the £46m purchase of family-owned brewer TD Ridley, which resulted in the closure of its brewery.