The £37m package includes 22 Varsity pubs, the brand focused on the buoyant student market, plus 28 pubs and bars including 11 of the mainstream pub offer, TP Woods. The sites are based principally in the Midlands and the North of England and 790 employees swell Barracuda's workforce, transferring from Wolverhampton and Dudley to the group.

With Varsity we are delighted to have the opportunity to acquire a group of quality branded successful, largely freehold pubs that enjoy a high profile in the lucrative student market, together with many other great pubs, bars and development opportunities, says chief executive Mark McQuater.

This is the third acquisition for the company that was launched in July 2000. The initial £50m acquisition of 35 large managed pubs from Enterprise Inns was followed by a £36m acquisition of the Ambishus Pub Company in October last year. Through this, it has developed a chain of Smith & Jones branded pubs, which are currently growing at a rate of 15 to 20 each year.

The group now owns and operates 135 managed pubs and bars throughout England and Wales and has 2,400 employees. The company reports a consolidated turnover of around £70m.