TIDMCCR
Minority Investment in Admiral Taverns("Admiral")
C&C Group plc ("C&C"), announces that in partnership
with Proprium Capital Partners and Admiral management, it has
agreed to acquire the entire issued share capital of Admiral.
The equity investment by C&C is GBP37m representing 47% of
the issued capital of Admiral. The investment will be funded from
existing C&C facilities and Admiral will be accounted for as an
associate of C&C.
Investment highlights
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 pubs1 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.
The Admiral 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.
In Admiral's latest audited accounts for the 52 weeks ended 28
May 2016, the group had underlying EBITDA of GBP25.2 million and an
underlying EBITDA margin of 36.2%. As at 28 May 2016, the gross
assets of the Admiral business were GBP231.8m and the gross
property assets were valued at GBP244.3m.
Financing
C&C is investing GBP37m, 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 C&C Group plc
C&C Group plc is a premium drinks company which owns,
manufactures, markets and distributes branded beer, cider, wine,
soft drinks and bottled water. C&C Group brands include:
Bulmers the leading Irish cider brand; Tennent's, the leading
Scottish beer brand; Magners the premium international cider brand;
as well as a range of niche and super premium ciders and beers,
such as Menabrea, Heverlee, Chaplin & Corks and the recently
acquired craft cider - Orchard Pig. C&C Group also owns and
manufactures Woodchuck, a leading craft cider brand in the United
States and manufactures and distributes a number of 3rd party
international beer brands in Scotland and Ireland. C&C is also
a leading drinks wholesaler in Scotland and Ireland, where it
operates under the Tennent's and C&C Gleeson brands
respectively. C&C Group is headquartered in Dublin with
manufacturing operations in Co. Tipperary, Ireland; Glasgow,
Scotland; and Vermont, USA. C&C Group plc is listed on the
Irish and London Stock Exchanges.
About Proprium Capital Partners
Proprium Capital Partners is a privately-held, real estate
focused, principal investing firm, advising funds which have a
combined net asset value of approximately $2 billion. Proprium's
investment philosophy is to partner with leading local, real estate
related companies seeking to create long-term, sustainable growth.
With offices in the New York area, London, Mumbai, Hong Kong,
Sydney and Atlanta, the Proprium team has managed investments in
over 15 countries.
Contacts:
C&C Group PlcStephen Glancey, Chief Executive
OfficerJonathan Solesbury, Interim Chief Financial OfficerJoe
Thompson, Investor RelationsTel: +44 7980 844 580
Financial adviser to C&CHSBC | Keith WelchTel: +44 20 7991
8888
Joint Corporate Brokers to C&CInvestec | Chris TrenemanTel:
+44 20 7597 4198Davy | Ronan VealeTel: +353 1 679 7788
Investors, Analysts & MediaFTI Consulting | Mark
Kenny/Jonathan NeilanTel: +353 1 765 0886Novella | Tim
RobertsonTel: +44 203 151 7008
This announcement contains inside information.
HSBC Bank plc ("HSBC"), which is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct
Authority (the "FCA") and the Prudential Regulation Authority in
the United Kingdom, is acting for C&C and no one else in
connection with the investment and will not be responsible to
anyone other than C&C for providing the protections afforded to
clients of HSBC, or for giving advice in connection with the
investment or any other matter referred to herein.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which C&C
believes are reasonable. However, these statements are neither
promises nor guarantees, but are subject to risks and
uncertainties, including those factors discussed on page 22 of the
Group's FY2017 Preliminary Results Announcement that could cause
actual results to differ materially from those anticipated.
1 As at 1 September 2017
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170903005086/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 04, 2017 02:00 ET (06:00 GMT)
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