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Magners brewer C&C Group has announced it has acquired British pub company Admiral Taverns in a joint venture with Proprium Capital Partners and Admiral Taverns management.
Admiral, which owns and operates an estate of 845 pubs mainly in England and Wales is being sold by Cerberus Capital Management, which has expanded the business through strategic investments such as the acquisition and integration of 111 pubs from Heineken.
C&C Group said it has invested £37 million, representing 47% of the business. C&C management believe the investment will deliver ‘significant’ economic benefits through the deal and the collaboration with a ‘highly experienced’ management team.
Admiral’s management will continue to lead the company, led by CEO Kevin Georgel.
In Admiral’s latest audited accounts for the 52 weeks ended 28 May 2016, the group had EBITDA of £25.2 million. As of 28 May 2016, the gross assets of the Admiral business were £231.8 million.
C&C CEO Stephen Glancey said: “Admiral management has a proven track record in balancing these returns with the needs of their tenants and consumers. Today’s new arrangements will enhance choice for both tenants and consumers and provide a platform for further growth at Admiral.
“For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.”
Cerberus managing director Ronald Rawald added: “Since 2012, Cerberus has partnered with the exceptional management team at Admiral Taverns, led by CEO Kevin Georgel, to strengthen and expand the business for the benefit of our investors and Admiral’s stakeholders, including consumers, tenants, and communities.
“Today, Admiral is the UK’s number one community pub group and is poised for continued and sustainable success. We are proud of what we have accomplished through our partnership with the Admiral team and continue to believe the UK pub sector is an attractive segment for long-term investors.”
The deal is the latest acquisition in the UK pub sector this year after Heineken’s purchase of Punch Taverns was given the green light last month.
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