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Marston's to acquire Charles Wells brewery
Posted on Thursday, 18 May 2017 12:58
Marston's has agreed to purchase the brewing and beer division of UK-based Charles Wells for a cash consideration of GBP 55.00 million.
The Bedford-based business has a portfolio of more than 30 beers, including leading brands such as Bombardier, Young's and McEwan's.
In the 12 months ended 30th September 2016, the unit generated revenues of GBP 92.00 million and earnings before interest tax, depreciation and amortisation of GBP 6.00 million.
Following completion of the acquisition, Charles Wells aims to create a new, smaller brewery in Bedford to supply its 200-strong pub chain.
Commenting on the acquisition, Marston's chief executive Ralph Findlay noted: “It is a high quality brewing business offering us opportunities to extend our trading area in the South of England and Scotland, and brings a range of well-known and popular brands into our portfolio.
“We also aim to develop further our range of international licensed brands, and look forward to working with our new overseas partners, including Estrella Damm, Erdinger and Kirin.”
UK beer manufacturer Marston’s is conducting a placing of around 57.60 million stocks in order to finance the acquisition.
Based on the company’s close of GBP 1.45 on 16th May 2017, the last trading day prior to the announcement, the shares can be valued at up to GBP 83.75 million.
Numis Securities, JPMorgan and Instinctif Communications are all advising the firm on the capital increase, with the stocks expected to be admitted to trading on 22nd May 2017.
Wolverhampton-headquartered Marston's claims to be one of the UK’s top pub businesses, as well as the leading brewer of premium cask and bottled ales.
The group, which was formerly known as Wolverhampton & Dudley Breweries, was founded in 1863 and now operates over 1,600 pubs, bars and lodges, as well as five breweries.
In the 26 weeks ended 1st April 2017, Marston's posted underlying revenue and profit before tax of GBP 440.80 million and GBP 33.70 million, respectively.
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