UK: Greene King agrees to offload 275 pubs
Greene King is looking to eventually cut its estate of pubs to 750
Greene King has agreed to sell 275 of its “non-core” on-trade outlets in the UK for GBP75.6m (US$127.7m).
The Suffolk-based brewer and pub operator is offloading the sites to new pub company Hawthorn Leisure Ltd, it said today (1 May). The deal is expected to complete by early next month.
Greene King's beers will continue to be sold at the outlets as it has agreed a three-year supply deal with Hawthorn.
The sale is part of a plan, announced by Greene King in 2010, to cut its tenanted and leased estate to 1,200 sites. However, it said today it now expects to cut the estate further, to around 750 outlets, to focus on "higher growth areas".
Rooney Anand, Greene King's CEO, said the company has “several options” for the funds raised from the sale.
"Depending on site availability and attractive valuations, our first priority will be to seek to further accelerate our retail expansion plans," he said. "In the absence of increased investment opportunities, we would also retain the option of using the funds to reduce our overall longer-term gearing position.”
Hawthorn's backers are Avenue Capital Group and May Capital LLP.
UK on-trade beer sales fell by 4.2% in the first three months of this year, the British Beer & Pub Association reported yesterday.
Canadean's "Greene King PLC : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis" contains in depth information and data about the company and its operations. The profile contains a ...
Greene King will continue to seek to gain share through investment and innovation in its core ale brand portfolio and through the expansion of its distribution system by increasing the number of its p...
Summary The Beer Market Insight United Kingdom report contains detailed brand, distribution and packaging data and analysis across the United Kingdom beer market for 2013. Brand and packaging volume d...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global wine market during May 2014. Summary Usin...
- Mahou San Miguel - just the Facts
- How to turn a domestic spirit into a global brand
- A game of two halves for Remy Cointreau - Analysis
- Whatever happened to binge Britain? - comment
- Britvic hits make-or-break time for US Fruit Shoot
- Beam Suntory to sell brandy & sherry to Emperador
- Former Diageo exec joins William Grant in LatAm
- A-B InBev mulls sale of Peroni, Grolsch - report
- Carlsberg "most likely" to buy Grolsch, Peroni
- This week in spirits & wine
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Future growth opportunities for global spirits
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Global Beer Market 2015-2019
- Global Wine Market to 2019 - Market Size, Development, and Forecasts