Marston’s has agreed to divest 137 pubs for £44.9 million to UK pub operator Admiral Taverns.
According to Marston’s, the disposal is in line with its strategy to reduce debt in part through the disposal of certain non-core assets.
The wet-led leased, tenanted and franchised pubs that are included in the deal contributed EBITDA of £4.8 million and operating profit of £3.7 million for the year to 28 September 2019.
“We are making good progress with our plans to reduce our net debt by £200 million by 2023 in part through the disposal of non-core assets,” said Ralph Findlay, Marston’s CEO.
“We are encouraged by the level of market interest that this portfolio of pubs has attracted. This further underpins our confidence in achieving the accelerated £70 million disposal proceeds target that we have set ourselves for the current year.”
Marston’s, which makes ales such as Hobgoblin, Young’s, Bombardier and Lancaster Bomber, currently has an estate of 1,537 pubs and employs around 14,000 people.
For Admiral Taverns, the announcement comes less than two months after it secured a deal to acquire 150 pubs from Star Pubs & Bars.
“This is another exciting acquisition for our business, building on the strong momentum established over the course of the year and on behalf of the entire team I would like to take this opportunity to welcome our new licensees and colleagues to Admiral,” said Chris Jowsey, Admiral chief executive.
“We remain fully committed to the leased and tenanted model and through this acquisition have been able to acquire an excellent portfolio of pubs, which we look forward to developing through our award-winning and highly supportive approach.”
© FoodBev Media Ltd 2019