£206m deal calls last orders for Marston’s brewery joint venture

Marston’s has sold its brewing assets for £206m, to become a business entirely focused on pubs.

Its 40% stake in Carlberg Marston’s Limited (CMBC) has been acquired by a subsidiary of Carlsberg in cash, four years after the joint venture was established.

CMBC was formed to combine the drink portfolios and extensive distribution network of Marston’s and Carlsberg in a £780m merger.

Whilst Marston’s believes that CMBC is well-positioned for future success as a market leader under Carlsberg’s sole ownership, it has been challenged by a number of unforeseen macro and socio-economic factors, including Covid-19, higher operating costs and inflation.

It also will be impacted by San Miguel now renewing the licensed production and distribution agreement with CMBC in the UK beyond the end of 2024.

Marston’s exit means it will form a pure-play hospitality business focused on its 1,370 pubs whilst retaining a long-term brand distribution agreement with CMBC as a key supplier and strategic partner.

Justin Platt, Chief Executive Officer, commented: “Today’s announcement represents a significant milestone for Marston’s as we realise our stake in CMBC. In my first six months with the business, it has become very clear to me that our core capability and key opportunity to unlock value for shareholders is in driving a focused and successful pub business.

“This deal further strengthens our balance sheet, significantly reducing our debt by over £200 million. In addition, CMBC remain valued strategic partners and we continue to benefit from our ongoing long-term brand distribution agreement with them. Crucially, it allows us to become a pure play hospitality business and focus on what we do best – namely, giving our guests amazing pub experiences. I look forward to delivering on the opportunities a focused pub business will provide to ensure we maximise value for our shareholders.”