Young & Co's Brew. Acquisition
23 January 2019 - 6:00PM
UK Regulatory
TIDMYNGA
Young & Co.'s Brewery, P.L.C.
("Young's")
Acquisition of Redcomb Pubs Limited
The Board of Young's is delighted to announce that it has today
acquired Redcomb Pubs Limited ("Redcomb"), a company that owns and
operates 15 pubs in prime locations, for GBP34 million on a
cash-free and debt-free basis.
The business currently generates run-rate EBITDA of
approximately GBP4 million. Investment in the pubs is planned over
the next two years which will naturally have a short-term impact on
profitability but should have a positive impact thereafter.
Therefore, in the first full year of ownership, the pubs are
expected to trade at the current run-rate, subject to the impact of
any investments undertaken.
The pubs will complement the Young's managed house estate both
in and around London, build upon a growing presence in the South
West and further enhance the Young's brand. Each of the pubs has a
premium offering and distinctive personality that differentiates it
in its local market. As a result of the transaction, the Young's
managed estate has increased by 8% from 185 to 200. With 70
tenanted pubs in its Ram Pub Company, the total Young's pub estate
will increase to 270 pubs.
The Redcomb estate comprises the following pubs:
Freeholds Leaseholds
Boat House, Instow Alphabet, Islington
Carnavon Arms, Highclere Bickley, Chislehurst
Manor Arms, Streatham Cherry Tree, East Dulwich
Seagate, Appledore (including Coach & Horses, Greenwich Market
18 The Quay) Lockhouse, Paddington Basin
Theodore Bullfrog, Charing Cross Old Shades, Whitehall
(part freehold / part leasehold) Old Manor, Potters Bar
Village Inn, Ealing Station Hotel, Hither Green
Worplesdon Place, Guildford
The acquisition has been financed through existing debt
facilities with Barclays and HSBC. Young's retains a strong balance
sheet following the acquisition and a robust long-term financing
package.
Commenting on the acquisition, Patrick Dardis, Chief Executive
of Young's, said:
"The team at Redcomb, headed by Dan Shotton and Mark Draper, has
created an outstanding, well -invested estate of pubs, which we are
delighted to add to the Young's fold.
The acquisition of these pubs represents an excellent
opportunity to continue the growth of the Young's managed estate.
They fit very well with our expansion strategy which is focussed on
high quality managed houses. These pubs are all in prime locations,
where our premium offer will work extremely well."
Anthony SchroederCompany SecretaryWednesday, 23 January 2019Tel:
020 8875 7000
Contacts:
Young & Co.'s Brewery, P.L.C. 020 8875 7000Stephen Goodyear,
Chairman / Patrick Dardis, Chief Executive
MHP Communications (PR adviser) 020 3128 8742Tim Rowntree /
Alistair de Kare-Silver
J.P. Morgan Cazenove (AIM nominated adviser) 020 7742 4000James
Mitford / Behzad Arbabzadah
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190122006042/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
January 23, 2019 02:00 ET (07:00 GMT)
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