By Business Editor Trevor Sturgess

Shepherd Neame is buying 13 more pubs in a £15m deal.

The pubs, owned by Punch Taverns, are all freehold and across the south east.

The 300-year-old Faversham brewer and pub operator is paying £14.86m in cash and says the pubs all have strong food and drink sales and are in good locations.

The latest purchase follows the buy-out of the Jamaica Wine House and The Westminster Arms in London and boosts Sheps’ pub estate to 378, of which 49 are managed and 329 tenanted and leased. It has also recently sold under-performing pubs for £7.2m.

Sheps expects the latest acquisition to generate more than £1.9m of earnings before interest, taxes, depreciation and amortisation () in the first financial year.

The purchase, which is due to complete on May 26, will be financed by a £15m five-year loan from the Royal Bank of Scotland and Lloyds Banking Group.

The company’s existing £10m revolving credit faclity has been extended from 2012 to 2014. The procing of the existing £60m term loan, matruing in 2026, remains unchanged.

In a statement, the company said it retained a strong balance sheet and robust long term financing. The latest purchase was in line with its strategy of driving pub quality through selective acquisition and disposal of low yielding pubs and unlicensed premises.

Jonathan Neame, chief executive, said: "This is an excellent opportunity to acquire a package of high quality individual pubs witin our core trading area. The acquisition is in line withour strategy and will further improve the quality of our pub estate."