Heineken is downsizing its UK pub estate

Heineken is downsizing its UK pub estate

Heineken is narrowing the size of its UK pub estate with the sale of 111 pubs to Admiral Taverns. 

The Dutch brewer said the deal, announced today, is part of a move to have an estate under its Star Pubs & Bars unit with a “specific” identity. The group is focussing on having “primarily suburban and village pubs with multiple income streams and a focus on food”, a spokesperson told just-drinks. 

The majority of the pubs being sold are in the North of England, the Midlands and Scotland. 

The transaction is expected to close next month, while financial details were not disclosed. 

As part of the deal, the Dutch brewer will continue to sells its ciders and beers in the pubs. The company will have around 1,100 on-trade outlets in the UK once the deal completes. 

“This sale frees up resources and enables us to focus on the core estate which has great scope for growth whilst continuing to showcase our cider and beer brands,” said David Forde, Heineken's UK MD. 

Kevin Georgel, CEO of Admiral Taverns, which is owned by private equity group Cerberus Capital Management, described the pubs as "high quality" and said he was confident the venues had a "vibrant future". 

In June, Heineken announced it was spending GBP18m on upgrading around 200 of its pubs, as part of a wider GBP126m investment in its UK business

The Dutch brewer acquired the majority of its pub portfolio from Galaxy Pub Estate in late 2011.

Yesterday, Heineken disclosed it had rejected an approach from SABMiller over a possible takeover.