Cider maker takes 47 percent stake in Admiral Taverns
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.
