FDG Food & Drink Gp

RNS Number:9722U
Food & Drink Group (The) PLC
17 April 2007

THE FOOD & DRINK GROUP PLC
("FDG" or "the Group")



Acquisition



The Food & Drink Group PLC, the London focussed licensed retailer and operator
of 26 bars, announces the acquisition of seven leasehold sites from The Puzzle
Pub Company Limited ("Puzzle").



The Group has signed contracts for the purchase of seven leasehold properties
from The Puzzle Pub Company Limited for a consideration of #1.2m, payable in
cash and funded from current financial resources.  The sites currently trade as
either Puzzle or The Stone Horse and are all located in Central London in
locations such as Westminster, the City and Canary Wharf.



In the last financial year to 31 January 2007, the sites delivered sales of
#3.7m and EBITDA of #0.3m.  The Group is only acquiring the sites, with no
associated central overhead.  The acquisition will be earnings enhancing next
year.



Each of the seven bars will be incorporated into one of the Group's current
trading divisions and those trading under the Puzzle concept will be re-branded
during a refurbishment programme during the remainder of 2007.  With five of the
sites having outside trading capacity, our short-term goal is to maximise the
performance of these sites as we come into the summer trading period, together
with the trading opportunity which the forthcoming smoking ban presents.  The
businesses are already tightly controlled from an operational perspective and
future improvements will come from upgrading the customer offer, particularly
with respect to food sales, and from improved purchasing across the enlarged
group.



Stephen Thomas, Chairman of The Food & Drink Group PLC, commented:

 "This acquisition meets our strategic objectives and will enhance shareholder
value.  These are good trading sites in some excellent locations which will
enable the Group to continue to deliver its growth aspirations."



                                                                   17 April 2007

ENQUIRIES:
The Food & Drink Group PLC                           Tel:      020 7349 4440
Stephen Thomas, Chairman
James Kowszun, Chief Executive                       Today:  020 7457 2020

College Hill
Justine Warren /Jamie Ramsay                         Tel:      020 7457 2020






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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