SUBSCRIBE

Inside food & drink manufacturing

Headlines > Business News

Read more breaking news

 

 

Marston’s acquires Charles Wells brewery in £55M deal

Post a comment

By James Ridler+

19-May-2017
Last updated on 19-May-2017 at 13:05 GMT2017-05-19T13:05:28Z

Martson’s is to acquire Charles Wells’s brewery business in a deal worth £55M
Martson’s is to acquire Charles Wells’s brewery business in a deal worth £55M

Marston’s has agreed to acquire the brewing business of Charles Wells Group in a deal worth £55M, which will see the brewer expand its presence in the UK.

Wolverhampton-based Marston’s will take control of Charles Wells’s portfolio of more than 30 beers, including the Bombardier, Young’s and McEwan’s brands.

The brewer will also gain the distribution rights for the Estrella Damm lager brand and other beers under license including Kirin and Erdinger.

As part of the acquisition, Marston’s has entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to the Charles Wells pub estate.

Chief executive officer of Marston’s Ralph Findlay commented: “We are delighted to have agreed to acquire Charles Wells Brewing and Beer Business.

‘Extend our trading area’

“It is a high quality brewing business offering us opportunities to extend our trading area in the south of England and Scotland, and brings a range of well-known and popular brands into our portfolio.”

Marston’s said the deal would expand its production capabilities to include lager brewing and canning, while improving production and distribution efficiency.

“From a supply chain perspective, Charles Wells offers lager brewing and canning capacity of scale, activities which are not currently undertaken by Marston’s,” said the company.  

“In addition, the acquisition presents opportunities to further improve efficiencies in brewing, packaging and logistics.”

The business said the acquisition of Charles Wells was a part of its strategy over the past five years to become the UK’s leading premium beer business.

‘Become a close trading partner’

Justin Phillimore, chief executive officer of Charles Wells Brewery, added: “We are delighted to have reached an agreement with Marston’s to acquire our brewery and become a close trading partner.

“After a detailed review of our strategy we had decided to re-balance the company more towards retail investment and that meant finding a partner we could work with for the future. There are opportunities for both companies in this deal and we look forward to bringing them to life.

The value of the sale equates to nine-times Charles Wells’s current earnings before interest, tax, depreciation and amortisation.

Meanwhile, last month food and drink manufacturers spent more than £1.5bn on acquisitions.

Weetabix was acquired by Post Holdings in a deal worth £1.4bn, while Addo Food Group was sold to Lloyds Development Capital in a deal estimated to be about £100M.  

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

On demand Supplier Webinars

Sustainable snacking trends for 2017
William Reed Business Media
All supplier webinars