Marston’s has announced it is to operate Brains portfolio of 156 pubs in Wales, on a combination of leased and management contract arrangements.
The pub business comprises a freehold estate of 86 managed and 55 tenanted pubs, together with a leasehold estate of 15 managed pubs and bars. It currently employs around 1,300 people.
The agreement, which has the unanimous support of the Brains board and its lenders, is consistent with Marston’s long-term strategy as a focused pub operator, after the recent disposal of its brewing assets.
Marston’s will operate the 141 freehold pubs on a leasehold basis, with effect from February, and with rent chargeable from April. The majority of these will be on long lease agreements of 25 years. The circa 1,300 people currently employed in the pub business will transfer across to Marston’s.
Ralph Findlay, chief executive of Marston’s, said: “We have worked closely with the management team and the SA Brain family to collaborate on a mutually beneficial transaction that safeguards the future of Wales’ leading pub company, enabling these great pubs to have a stable and successful future, and securing 1,300 hospitality jobs in Wales.
Long-term strategy
“This transaction is entirely consistent with Marston’s long-term strategy as a focused pub operator and strengthens our representation in South and West Wales, whilst protecting the heritage and independence of an iconic Welsh business.
“These high quality pubs are a great fit with our existing estate and will benefit from Marston’s scale and operational expertise to further unlock their excellent long-term potential. We look forward to the pub teams joining us and to welcoming guests and the communities which they serve, back into these pubs as the country emerges from the pandemic over the weeks and months ahead.”
John Rhys, chairman of Brains, said: “This agreement marks the formation of a lasting strategic relationship with Marston’s, which secures the future of Brains’ pubs and 1,300 of our employees within them.
“We know and trust Marston’s to be excellent custodians of our pubs and, whilst this is not a decision we have taken lightly, we are confident that both our pubs — and our pubs teams — will thrive under their stewardship. Furthermore, this transaction enables Brains to recapitalise its balance sheet and continue its long heritage as an independent entity, preserving this great Welsh business for generations to come.
“We thank all our stakeholders and our advisers, Evercore, for their steadfast support, which has enabled us to achieve
this transaction in these unprecedented times.”
