Woolworths Limited (ASX:WOW) is close to signing a deal to add 32 pubs to its portfolio according to the Australian Financial Review.
The $500 million deal would secure the management rights for pubs across NSW.
According to sources quoted by the paper, the Laundy Hotel Group and Woolworths backed ALH group will team up as separate operators and owners of the venues.
LHG is expected to transfer the operating licences on 24 of its pubs to Woolworth’s hotel division. Another eight pubs will be added to the joint venture.
The deal is expected to be officially announced soon.
In the 2011 financial year Woolworths generated a net profit $2.1 billion.
