C&C Group, which owns brands including Magners and Tennents, has partnered with Proprium Capital Partners and Admiral management to acquire the entire issued share capital of pubco Admiral Taverns.
The equity investment by C&C is £37m representing 47% of the issued capital of Admiral. The investment will be funded from existing C&C facilities and Admiral will be accounted for as an associate of C&C.
Admiral currently owns and operates 845 pubs, mainly in England and Wales, with a broad geographic distribution. The pubs are 95% freehold or long leasehold, in predominantly suburban or city locations, and are operated as a tenanted estate.
The management team at Admiral will remain invested and continue to lead the business. They are well regarded within the industry, says C&C, and Admiral has won multiple industry awards and has received consistent recognition from its tenants for its forward looking, operational approach.
C&C chief executive, Stephen Glancey, said: “The local pub remains at the heart of many suburban and city communities, often the hub of local activity, and their economic and social contribution is immeasurable. C&C has a long and successful track record of supplying and providing financial support to local pubs within the independent free trade in Scotland and Ireland.
“In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.
WAdmiral management has a proven track record in balancing these returns with the needs of their tenants and consumers. Today’s new arrangements will enhance choice for both tenants and consumers, and provide a platform for further growth at Admiral.
“For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.”