Marston’s buys trading operations from northern rival

WOLVERHAMPTON pubco and brewer Marston’s has reached agreement with Lancashire brewery Daniel Thwaites to acquire the trading operations of Thwaites’ beer division.

The total cash consideration is £25.1m, excluding working capital.   

The acquisition includes two brands: Wainwright and Lancaster Bomber ales.

Marston’s has been brewing Blackburn-based Thwaites’ beers since early 2014.  As part of this acquisition, it has entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to Thwaites’ pub estate.

Thwaites’ beer division is a sales business of scale concentrated in the North West of England, including a 150-strong team of regional sales, marketing and distribution staff operating in the Independent Free Trade, National On Trade and National Off Trade channels. 

The business has shown good growth in recent years, including the acquisition of Hydes Brewery’s free trade business in 2012 which increased Thwaites’ business in Manchester.

Thwaites’ two principal beer brands are Wainwright, one of the most popular golden cask ales in the UK and Lancaster Bomber, a premium ale. Both brands have won numerous awards in recent years. 

Marston’s says this acquisition is consistent with Marston’s brewing strategy to focus on popular premium ales with local and regional appeal, and provides an opportunity to capitalise on the developing free trade market and wider consumer interest in the beer category.

The transaction is expected to complete on April 17. 

The acquisition is expected to be earnings-enhancing in the first full year of ownership; in the current financial year it is estimated that the contribution to profit before taxation will be around £1.5m.

Ralph Findlay, chief executive officer of Marston’s, said:  “I am delighted to welcome our new colleagues to Marston’s. We are acquiring a very high quality business with good people and brands, and with growth potential.

“The acquisition is consistent with our beer business strategy to focus on local provenance and premium brands, and provides opportunity to capitalise on the developing free trade market and increasing consumer interest in the beer category.”

 

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