C&C Group has announced that it has agreed to acquire the entire issued share capital of Admiral, which currently owns and operates 845 pubs, mainly in England and Wales.
The equity investment by C&C is £37 million, 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.
C&C said that it believes that the investment will deliver 'significant economic and route-to-market benefit to its Great Britain businesses'.
Stephen Glancey, C&C CEO, said: "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."
The Admiral 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.
Glancey added, "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."
© 2017 - Checkout Magazine