The Capital Pub Company has bought rival Tomahawk for £5m, as it looks to extend its estate to the 50 pub mark.
Tomahawk owns the Morgan Arms in Bow, London and the Black Swan in Ockham, Surrey, both of which are operated by Geronimo Inns. Capital said it would now serve notice on Geronimo under the terms of its existing management contract, ultimately taking direct control of the sites.
The acquisition of Enterprise Investment Scheme-backed Tomahawk takes Capital to 30 pubs and will be financed in part through a £2.8m share placing with the remainder paid in cash reserves.
James Bruxner, chairman of Capital, said: "I am delighted to present this offer to the Tomahawk shareholders. Tomahawk's two pubs - the Morgan Arms and the Black Swan - are well-located freeholds which will fit well within Capital Pub Company's estate.
Yesterday Capital revealed ambitions to reach a pub estate of 50 in the coming years after a making a strong start to the year.
Martyn Leek is news editor of BigHospitality's sister title M&C Report.