Cains Brewery has bought pub and hotel group Honeycombe Leisure plc in a reverse takeover with the backing of Bank of Scotland.

The deal creates a group with a portfolio of more than 100 pubs and bars, mainly in the northwest.

It is expected that the combined entity will trade as the Cains Beer Company and will be led by the Liverpool-based brewery’s joint managing directors Ajmail and Sudargahara Dusanj.

Bank of Scotland provided £40 million to complete the deal, which is subject to shareholder approval. The funding included some £2.5 million to invest in the enlarged group, which will raise the same amount from a share placing. The market cap for the group will be £7.5 million.

The Bank of Scotland was advised by DLA Piper with Halliwells supporting Cains Brewery’s vendors.