JOBS could go at cider-maker Bulmers after it was snapped up in a £280m buy-out.

The Hereford-based firm announced today it had agreed the terms of a takeover deal with Brewing giant Scottish & Newcastle.

S&N, based in Edinburgh, has not ruled out job cuts at Bulmers but said most of the £10m savings it planned to make would come from "distribution synergies and purchasing benefits".

The swoop came as Bulmers, famous for its Strongbow cider, battled to secure its financial future after a year in which it issued five profits warnings.

S&N, which makes John Smith's and Foster's, has pledged to maintain cider production in Hereford and maintain close links with apple growers and the local community.

Will Samuel, chairman of Bulmers, said the board believed the full potential of the firm's brands could only be realised by being part of a large international drinks group.

"We believe this offer delivers both certainty and value, significantly in excess of the alternative stand-alone refinancing option, and is, therefore, in the best interests of Bulmers' shareholders and is, on balance, the best outcome for employees."

Esmond Bulmer, former chairman of the firm, said it was a sad day for his family, adding S&N had pledged to be "sensitive" to the culture of the company.

"This is a day of mixed emotions for the Bulmer family," he said.

"There is, of course, sadness to see the business sold, but it has become increasingly clear that Bulmers lacks the scale and the financial resources to exploit

the market opportunities that exist."

Shareholders will receive 310p for each Bulmers Ordinary Share - a premium of about 38 per cent on the shares' closing price of 225 pence on Friday - 110p for each First Preference Share and 100p for each Second Preference Share.

Bulmers recently cut 200 jobs, scaled back international aspirations and reduced its product portfolio to ensure it had sufficient working capital for the next year.

It had already pledged to make £6m of savings as part of its turnaround plan but S&N said it would find another £10m of cost efficiencies.

S&N announced the buy-out at the same time as it announced plans to auction off its pubs and restaurants - estimated to be worth about £2bn - which includes the Chef & Brewer chain and T&J Bernard.