Young & Co's Brew. Acquisition

 
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Young & Co.'s Brewery, P.L.C.

("Young's")

Acquisition of Redcomb Pubs Limited

The Board of Young's is delighted to announce that it has today acquired Redcomb Pubs Limited ("Redcomb"), a company that owns and operates 15 pubs in prime locations, for GBP34 million on a cash-free and debt-free basis.

The business currently generates run-rate EBITDA of approximately GBP4 million. Investment in the pubs is planned over the next two years which will naturally have a short-term impact on profitability but should have a positive impact thereafter. Therefore, in the first full year of ownership, the pubs are expected to trade at the current run-rate, subject to the impact of any investments undertaken.

The pubs will complement the Young's managed house estate both in and around London, build upon a growing presence in the South West and further enhance the Young's brand. Each of the pubs has a premium offering and distinctive personality that differentiates it in its local market. As a result of the transaction, the Young's managed estate has increased by 8% from 185 to 200. With 70 tenanted pubs in its Ram Pub Company, the total Young's pub estate will increase to 270 pubs.

The Redcomb estate comprises the following pubs:

 
Freeholds                            Leaseholds 
Boat House, Instow                   Alphabet, Islington 
Carnavon Arms, Highclere             Bickley, Chislehurst 
Manor Arms, Streatham                Cherry Tree, East Dulwich 
Seagate, Appledore (including        Coach & Horses, Greenwich Market 
18 The Quay)                         Lockhouse, Paddington Basin 
Theodore Bullfrog, Charing Cross     Old Shades, Whitehall 
(part freehold / part leasehold)     Old Manor, Potters Bar 
Village Inn, Ealing                  Station Hotel, Hither Green 
                                     Worplesdon Place, Guildford 
 
 

The acquisition has been financed through existing debt facilities with Barclays and HSBC. Young's retains a strong balance sheet following the acquisition and a robust long-term financing package.

Commenting on the acquisition, Patrick Dardis, Chief Executive of Young's, said:

"The team at Redcomb, headed by Dan Shotton and Mark Draper, has created an outstanding, well -invested estate of pubs, which we are delighted to add to the Young's fold.

The acquisition of these pubs represents an excellent opportunity to continue the growth of the Young's managed estate. They fit very well with our expansion strategy which is focussed on high quality managed houses. These pubs are all in prime locations, where our premium offer will work extremely well."

Anthony SchroederCompany SecretaryWednesday, 23 January 2019Tel: [phone]

Contacts:

Young & Co.'s Brewery, P.L.C. 020 8875 7000Stephen Goodyear, Chairman / Patrick Dardis, Chief Executive

MHP Communications (PR adviser) 020 3128 8742Tim Rowntree / Alistair de Kare-Silver

J.P. Morgan Cazenove (AIM nominated adviser) 020 7742 4000James Mitford / Behzad Arbabzadah

View source version on businesswire.com: https://www.businesswire.com/news/home/20190122006042/en/

 
This information is provided by Business Wire 
 
 

(END) Dow Jones Newswires

January 23, 2019 02:00 ET (07:00 GMT)