Acquisition

RNS Number : 9778I

Marston's PLC

31 March 2015

 

31 March 2015

MARSTON'S PLC

ACQUISITION

Marston's PLC ("Marston's") is pleased to announce that it has reached agreement with Daniel Thwaites plc ("Thwaites") to acquire the trading operations of Thwaites' beer division. The acquisition includes two leading, premium brands:  Wainwright and Lancaster Bomber ales. The total cash consideration is £25.1 million excluding working capital. 

Marston's has been brewing Thwaites' beers since early 2014.  As part of this acquisition, we have entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to Thwaites' pub estate.

Thwaites' beer division is a high quality sales business of scale concentrated in the North West of England, including a 150-strong team of regional sales, marketing and distribution staff operating in the Independent Free Trade, National On Trade and National Off Trade channels.  The business has shown good growth in recent years, including the acquisition of Hydes Brewery's free trade business in 2012 which increased Thwaites' business in Manchester.

Thwaites' two principal beer brands are Wainwright, one of the most popular golden cask ales in the UK and Lancaster Bomber, a premium ale. Both brands have won numerous awards in recent years and are highly complementary to Marston's market-leading portfolio of premium craft and bottled ales.  

This acquisition is consistent with Marston's brewing strategy to focus on popular premium ales with local and regional appeal, and provides an opportunity to capitalise on the developing free trade market and wider consumer interest in the beer category.

The transaction is expected to complete on 17 April 2015.  In the 12 months to December 2014 EBITDA is estimated to have been around £7 million before overheads of approximately £2 million.  The acquisition is expected to be earnings-enhancing in the first full year of ownership; in the current financial year it is estimated that the contribution to profit before taxation will be around £1.5 million.

Commenting on the transaction, Ralph Findlay, Chief Executive Officer of Marston's, said:

"I am delighted to welcome our new colleagues to Marston's. We are acquiring a very high quality business with good people and brands, and with growth potential. The acquisition is consistent with our beer business strategy to focus on local provenance and premium brands, and provides opportunity to capitalise on the developing free trade market and increasing consumer interest in the beer category."

Enquires:

Marston's PLC Tel: [phone]	Instinctif Partners  Tel: [phone]
Ralph Findlay, Chief Executive Officer	Justine Warren
Andrew Andrea, Chief Financial Officer	Matthew Smallwood

NOTES TO EDITORS

○	Marston's is a leading pub operator and independent brewer.
○	It has an estate of around 1,700 pubs situated nationally, comprising managed, franchised and leased pubs.
○	It is the UK's leading brewer of premium cask and bottled ales, including Marston's Pedigree and Hobgoblin.  The beer portfolio also includes Banks's, Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers.
○	Marston's employs around 13,000 people.

 

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