Industry & Business

C&C to acquire stake in UK pub group

 Breaking News
  • Ambitious Enterprise Cross-Border Rail Strategic Development Plan Launched Translink and Iarnród Éireann have launched an ambitious new strategic development plan for the Cross-border Enterprise Rail Service between Belfast and Dublin. Called ‘Better Connecting Dublin and Belfast’, the strategy sets out a road map of how both companies jointly plan to further enhance the service on this important north/south rail corridor. The plan launched by [...]...
  • More Milk Needed to Cover Demand in 2030 – New Technologies Will Help Between now and 2030 worldwide demand growth for milk and milk products will be three times the level of current US milk production. This was one of the main findings of the latest publication, from the IFCN – the Dairy Research Network – discussed at the 19th IFCN Dairy Conference, held at Teagasc, Moorepark, Cork. Today, [...]...
  • IDA Reports Strong First Half IDA Ireland, the inward investment agency of the Irish Government, has reported a very strong first half of 2018. IDA expects that investments approved in the first half will lead to the creation of over 11,300 jobs as companies roll out their plans over the coming months and years. This compares with 11,000 over the [...]...
  • Building and Construction Output Increased by 7.4% in 1st Quarter 2018 According to the latest CSO figures, the volume of output in building and construction increased by 7.4% in the first quarter of 2018 when compared with the preceding period. This reflects increases of 5.6%, 5.5% and 1.1% respectively in the volume of residential building work, non-residential building work and civil engineering work. The change in the [...]...
  • Housing Market Failing Younger Generations, Says First Woman President of IPAV The current housing market is failing our younger generations, according to Ella Dunphy (pictured) of DNG, who recently became the first woman President of IPAV, the Institute of Professional Auctioneers & Valuers. She was speaking at the organisation’s AGM and annual conference at the Lyrath Estate Hotel, Kilkenny. “It’s a market where those with the greatest [...]...

C&C to acquire stake in UK pub group

C&C to acquire stake in UK pub group
September 05
09:00 2017

C&C Group plc has announced that in partnership with Proprium Capital Partners & Admiral management, it has agreed to acquire the entire issued share capital of Admiral. The equity investment by C&C is £37m and represents 47% of the issued capital of Admiral. It will be funded from existing C&C facilities and Admiral will be accounted for
as an associate of C&C.

C&C believes that the investment will deliver significant economic and route-to-market benefit to its GB businesses through:

  • Collaboration with a highly experienced and skilled management team;
  • Participation in a resilient and growing earnings stream from a quality, tenanted pub
    estate;
  • Direct access to 845 pubs mainly across England and Wales, through a procurement
    and supply agreement;
  • Mid-single digit earnings accretion and attractive returns on equity in the first full
    financial year following completion; and
  • A long term commitment from our partners to develop the business.

Admiral currently owns and operates 845 pubs, mainly in England and Wales, with a broad geographic distribution. The pubs are 95% 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. They are well regarded within the industry and Admiral has won multiple industry awards and has received consistent recognition from its tenants for its forward looking, operational approach.

C&C is investing £37m, representing 47% of the issued capital of Admiral. 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. C&C will equity account for its investment in Admiral.
The transaction is subject to FCA approval only and is expected to complete by the end of November 2017.

Commenting on the investment, Stephen Glancey, C&C CEO, 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.”

About Author

editor

editor

Related Articles

New Subscriber





Subscribe Here



Advertisements



















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4