Marston’s acquires Charles Wells for £55m, revenue up 3%, places shares

Marston’s acquires Charles Wells for £55m, revenue up 3%, places shares
18/05/2017 - 09:26
Marston’s PLC has acquired the Charles Wells brewing business for £55 million, which it intends to finance from an equity placing that represents 9.9% of its issued share capital.

The acquisition will be completed in June and includes the UK distribution rights for the Estrella Damm lager brand as well as a long-term exclusive agreement to supply all beer, wine, spirits and minerals to the Charles Wells pub estate.

Marston’s will finance the acquisition with a non-pre-emptive cash placing of approximately 57.6 million new ordinary shares in the company to institutional investors, which represents approximately 9.9% of the company's issued share capital.

Ralph Findlay, chief executive officer of Marston’s PLC, said: “The acquisition of Charles Wells Brewing and Beer Business builds on Marston’s established brewing prowess and is a further step in our objective to develop the leading premium beer business in the UK market.

“We have demonstrated our ability to acquire, integrate and develop beer brands evidenced by the success of brands such as Hobgoblin, Wainwright, and Lancaster Bomber. We have also achieved success with international licensed brands including Shipyard, now the 2nd biggest craft beer in the UK on trade.”

The pub operator and brewer has also announced that revenue grew 3% to £440.8 million in the 26 weeks ended April 1st 2017. Underlying profit before tax increased 3% to £33.7 million.

Marston’s opened four pubs and three lodges taking its estate to over 1,000 rooms. The average profit per pub is up 3% in the first half of the year. 

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