UK: S&N sells retail division for £2.5 billion
The deal has been made with Spirit Amber Bidco, a new company formed by a consortium led by Texas Pacific Group and The Blackstone Group and also comprising CVC Capital Partners and Merrill Lynch Global Private Equity. At the same time the pub group Spirit Group Holdings Limited will be incorporated into Spirit Amber Holdings.
The transaction, which is expected to be completed during November 2003, is subject to approval by S&N shareholders.
Tony Froggatt, Chief Executive of S&N said: "The successful sale of S&N Retail is a key step in the Group's strategy of focusing on its brewing business. The proceeds from the sale will be used to reduce debt, strengthening the financial position of Scottish & Newcastle. This will enable us to develop and drive value from our existing European platform, whilst continuing to build on our established positions in other markets where S&N has high potential for organic growth such as Russia, the Ukraine, India and the United States."
Tony Campbell, Chairman of Spirit Amber said: "We are delighted to acquire such a high quality business with great pubs and great people. I am confident that the business will continue to prosper as part of the new group, which will be the leading managed pub business in the UK."
S&N has also signed a seven-year agreement for the supply of its brands of beer and cider, at market prices. The agreement contains a volume commitment which, subject to a market change mechanism, is in line with current volumes supplied to the existing S&N Retail Estate.
S&N said its current trading continues to be in line with market expectations.
Fitch Ratings has cut its debt rating on brewer, Scottish & Newcastle (S&N), from BBB to BBB-minus....
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- Sustainability in Wine - Part I
- just the Ten - Top News Stories of 2014
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018