Marston’s PLC has reached agreement with Daniel Thwaites plc to acquire the trading operations of Thwaites’ beer division. The acquisition includes two leading, premium brands: Wainwright and Lancaster Bomber ales. The total cash consideration is £25.1 million excluding working capital. In the 12 months to December 2014 EBITDA is estimated to have been around £7 million before overheads of approximately £2 million. The acquisition is expected to be earnings-enhancing in the first full year of ownership; in the current financial year it is estimated that the contribution to profit before taxation will be around £1.5 million.
Marston’s has been brewing Thwaites’ beers since early 2014. As part of this acquisition, it has entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to Thwaites’ pub estate.
Thwaites’ beer division is a high quality sales business of scale concentrated in the North West of England, including a 150-strong team of regional sales, marketing and distribution staff operating in the Independent Free Trade, National On Trade and National Off Trade channels. The business has shown good growth in recent years, including the acquisition of Hydes Brewery’s free trade business in 2012 which increased Thwaites’ business in Manchester.
Thwaites’ two principal beer brands are Wainwright, one of the most popular golden cask ales in the UK and Lancaster Bomber, a premium ale. Both brands have won numerous awards in recent years and are highly complementary to Marston’s market-leading portfolio of premium craft and bottled ales.
This acquisition is consistent with Marston’s brewing strategy to focus on popular premium ales with local and regional appeal, and provides an opportunity to capitalise on the developing free trade market and wider consumer interest in the beer category.
Thwaites has retained ownership of its award winning craft beer brands and other cask ale brands,
including its seasonal ale range, which it will continue to brew and sell in its own properties.
Superb hospitality, outstanding properties, great location
Speaking on behalf of Daniel Thwaites, Chief Executive Richard Bailey said:
“This is a very exciting development which allows us to focus on our pubs, inns and hotels, whilst
retaining a small brewery to continue to supply our own properties with our fantastic beers and
opening up a wider drinks range to our customers through a long term supply deal with Marston’s.
“We are delighted that our beer business will find a new home in a company that is as passionate about the quality of beer that we have always been and will provide ongoing employment for the vast majority of our employees affected.
“It is our intention to redeploy the proceeds into both our existing, and new properties and the sale of our third party beer business allows us to move forward with our strategy to provide superb hospitality in outstanding properties in great locations.”
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