Cider maker takes 47 percent stake in Admiral Taverns

dbba8da3-0726-419a-8daf-8f2af158ddd7articleimage.png

07 Dec 2017 --- Cider maker C&C has completed the deal to invest in UK pub group Admiral Taverns. The makers of Magners, C&C confirmed to FoodIngredientsFirst that is has completed on the deal that, at the time of the initial announcement, was said to be worth approximately £37 million (US$49.5 million). 

The remaining equity is provided by Proprium Capital Partners and Admiral management. Debt funding for the acquisition is non-recourse to C&C.

The investment will be funded from existing C&C facilities and Admiral will be accounted for as an associate of C&C after all conditions of the Admiral investment have now been satisfied. 

C&C believes that the investment will deliver significant economic and route-to-market benefits to its businesses through collaboration with a highly experienced and skilled management team and “participation in a resilient and growing earnings stream from a quality, tenanted pub estate.”

The Admiral business
Admiral currently owns and operates 845 pubs, mainly in England and Wales, with a broad geographic distribution. The pubs are 95 percent freehold or long leasehold, in predominantly suburban or city locations and are operated as a tenanted estate.

The management team at Admiral will remain invested and continue to lead the business.

At the time of the original announcement earlier this year, C&C CEO, Stephen Glancey, said: “The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable. C&C has a long and successful track-record of supplying and providing financial support to local pubs within the independent free-trade in Scotland and Ireland.”

“In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.”

“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.

Related Articles

Food Ingredients News

Barley’s newly discovered novel flavors could be revolutionary for beer world

29 Nov 2017 --- Barley may now be ready for its time in the brewing spotlight, according to studies in the peer-reviewed Journal of the American Society of Brewing Chemists. A research team led by the US’ Oregon State University, also involving researchers at The Sainsbury Laboratory, Norwich, UK, found notable differences in the taste of beers malted from barley varieties said to have flavor qualities.

Food Ingredients News

EHL expands gluten-free range to address free-from demands

25 Oct 2017 --- EHL Ingredients has expanded its range of certified gluten-free herbs and spices in response to increasing consumer demand for free-from food products. It will now offer 20 new ingredients that have been tested and certified as gluten-free, following the success of gluten-free ground cumin and coriander launched last year. 

Business News

Brexit survey reveals mass UK food industry workforce shortages

24 Aug 2017 --- Trade bodies from across Britain’s food and drink supply chain are warning that the continuation of a mass EU exodus of workers will damage the UK economy and cause serious disruption to the sector. Almost one-third of UK food and drink business has had non-UK EU leave their roles since the referendum first called for Brexit last summer, according to the latest survey involving more than 600 businesses.

Business News

UK: Competition regulator gives Heineken green light in Punch Taverns takeover

21 Aug 2017 --- Britain’s competition watchdog says Heineken’s proposal to sell off pubs in 33 areas does satisfy previous antitrust concerns about the US$519 million takeover of Punch Taverns. The Competition and Markets Authority (CMA) in the UK says the Dutch beer giant has cleared all hurdles in relation to the takeover and has avoided further investigation.

Business News

Heineken to Address Competition Concerns from UK Regulators

15 Jun 2017 --- The Competition and Market Authority (CMA) has found that Heineken’s proposed purchase of part of the Punch Taverns estate could reduce competition in 33 local areas across Britain.

More Articles