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Pub company Greene King has announced its first move into the restaurant sector with a £68.1 million deal to snap up a chain of seafood eateries.

In a statement today the pub operator and brewer said that it had agreed to buy the Loch Fyne Restaurants (LFR) business in a cash deal which it claimed would give Greene King greater access to the premium end of the food market.

The agreed transaction comes as UK pub companies increasingly look to food sales to boost profits, in order to combat the potential impact of smoking bans on drinks consumption.

Greene King, which announced last month that it was in exclusive talks with LFR over a possible takeover deal, has agreed to acquire the 36 restaurants run by the chain throughout the country.

It revealed today that LFR, founded in 1998 on the back of the success of a Scottish oyster farm, has plans to increase its base by a further 20 per cent within the current financial year.

Greene King said that it also saw the potential to double the existing number of LFR outlets over the medium term.

The company added that it was financing the acquisition through existing debt facilities and expected the takeover to enhance its earnings within the first full year of ownership.

Commenting on the deal Greene King chief executive Rooney Anand said: "Loch Fyne is a high quality, well-respected British restaurant brand which gives us greater access to the premium end of the market and brings to our business further operational expertise.

"We have a strong track record of maximising the benefits from our acquisitions and this will be no exception," he added.

LFR chief executive Mark Derry stressed that the deal would give his company the "opportunity to capitalise on our already strong reputation and to accelerate the expansion of our business".