Marston's has said that it has formed a joint venture with Carlsberg UK to create a brewing and distribution company, in which the British pub operator will get a 40% stake and a cash payment of £273 million.
Marston's, whose pubs have been forced shut due to the coronavirus crisis, said the partnership values its brewing business at up to £580 million ($706.03 million) and Carlsberg UK's brewing business at 200 million pounds.
The joint venture has been named Carlsberg Marston's Brewing Company.
'An Important Step Forward'
Carlsberg CEO, Cees ’t Hart, described the deal "an important step forward for our UK business" and added, "The joint venture’s brand portfolio will allow us to offer a significantly stronger beer portfolio to our UK customers, and at the same time extend distribution into the Marston’s pub estate.
"In addition, the combined business will bring our customers wider choice, greater capacity, product innovation, and marketing and distribution efficiency benefits."
'A Strong Portfolio'
The joint venture will offer a 'strong portfolio' of international, national and regional beer brands and benefit from the pub operator's distribution network, Carlsberg said in its statement.
Marston’s operates around 1,400 pubs and distributes to around 11,000 customers directly, including the independent free trade, other pub companies, the off-trade and export.