NELSON-based Devonshire Pub Company has been sold in a £32 million deal to Honeycombe Leisure PLC that has created the North West's largest independent managed pub group.

Devonshire operates 35 pubs throughout the North West, Yorkshire and Cheshire, including the Thatch and Thistle in Nelson, Burnley's BB11, the Simonstone Hotel and the Bee's Knees in Accrington.

Preston-based Honeycombe confirmed the takeover and revealed that 12 pubs, mainly from the Devonshire estate, would be sold to reduce debt.

A company spokesman was unable to disclose the names of the pubs within the disposal programme.

And a question mark remained over the jobs of the staff within the Devonshire Pub Company's head office in Surrey Road, Nelson, thought to number around 30.

Honeycombe Leisure is paying £8.5 million in cash and loan notes and is assuming Devonshire's debts of £22 million. A further £1.5 million will be paid in 2002.

Sandy Anderson, chairman of Honeycombe, said the enlarged group would benefit significantly from increased buying power and economies of scale.

He said: "Devonshire provides proven revenue streams, backed by high quality assets, and its acquisition fulfils all the criteria we identified for the shift in strategic focus. The geographic and operation synergies are outstanding and the commercial logic compelling."

The Devonshire Pub Company was formed in the early 1990s.

In 1998, it disposed of its tenanted pubs to Pubmaster and concentrated on growing a high quality managed portfolio.

In the year to March 2000, turnover was around £12 million, with a post tax profit from the pubs of £2 million.