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Wolv.& Dudley Brews. (WOLV)

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Monday 20 March, 2006

Wolv.& Dudley Brews.

Acquisition

Wolverhampton& Dudley Breweries PLC
20 March 2006

                                                                   20 March 2006

                                                           For immediate release



               THE WOLVERHAMPTON & DUDLEY BREWERIES, PLC ('W&DB')

             Acquisition of Celtic Inns Holdings Limited ('Celtic')

W&DB announces that it has acquired Celtic for £43.6 million on a debt and cash
free basis from Dunedin Capital Partners, Dr Ainsworth and existing management
and employees of Celtic, subject to an adjustment based on net working capital
at completion.  The majority of the consideration was satisfied in cash with
certain employee shareholders receiving loan notes.  The cash consideration was
funded from existing bank facilities.

Celtic has an estate of 70 community pubs based predominantly in South Wales
including 21 in Southern England.  The estate, of which approximately three
quarters is freehold, comprises 63 tenanted outlets and 7 managed houses.  The
Celtic estate is a good fit for W&DB's existing estate.

As at the end of December 2005, Celtic's run-rate pub EBITDA and EBIT, before
central overheads, were £4.5 million and £4.2 million respectively.  It is
anticipated that the acquisition will generate annual purchasing synergies of
£0.2 million.

Commenting, Ralph Findlay, Chief Executive of W&DB, said: 'The acquisition
represents good value for our shareholders and meets our returns criteria.
Celtic has a good quality estate which complements our existing business both
operationally and geographically.  The acquisition also represents an excellent
opportunity for Celtic tenants to access W&DB's industry-leading agreements and
a much wider brand portfolio.'


Enquiries:


W&DB                                                            01902 329516
Ralph Findlay
Paul Inglett

McQueen Limited                                                 020 7667 6861
Jim Fallon
George Fleet

Hudson Sandler                                                  020 7796 4133
Andrew Hayes
Nick Lyon


McQueen Limited, which is authorised and regulated in the United Kingdom by the
Financial Services Authority, is acting exclusively for W&DB and no-one else in
connection with the acquisition of Celtic and will not be responsible to anyone
other than W&DB for providing the protections afforded to clients of McQueen
Limited or for providing advice in relation to the acquisition of Celtic.




Notes:


(1)  The Celtic estate includes two pubs where a purchase contract has been
signed and deposit paid but completion is scheduled to take place at a later
date.

(2)  Run rate EBITDA and EBIT has been extracted from unaudited management
records and is based on moving annual total ('MAT') for the 12 months ended 31
December 2005, adjusted to reflect full year estimates for those pubs acquired
after 1 January 2005.

(3)  The statement regarding estimated cost savings relates to future actions
and circumstances which, by their nature, involve risks, uncertainties and other
factors.  Accordingly, the cost savings referred to may not be achieved, or
those achieved could be materially different from those estimated.




                      This information is provided by RNS
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