Close Brothers drops brewery arm amid operations overhaul
Close Brothers is set to sell off its specialist service provider division for the beer industry as the banking group continues to overhaul operations.
The FTSE 250 listed group established Close Brewery Rentals Limited (CBRL) in 2007, which provides keg and cask rental, leasing, and management services for breweries and beverage producers.
The division offers short- and long-term container rentals and services to help breweries manage container fleets efficiently to skirt upfront costs.
Close Brothers is expected to complete sale of the division to MML Keystone – a fund managed by MML Capital – this year.
The sale will mark the group’s exit from brewery container rental solutions, but the lender said it will “remain a key specialist lender in the beverage finance market and will continue to provide finance solutions for brewery and distillery equipment”.
The bank said Close Brothers Beverage Finance holds “attractive growth opportunities in this sector”. The division had a loan book of near £35m at the beginning of 2025.
Motor finance verdict looms
The sale comes as Close Brothers looks to streamline operations to slash costs.
Mike Morgan, the group’s chief executive, said: “We believe that this is the right time to sell CBRL given the capital needed to maximise its growth potential and our focus on simplifying our business portfolio.”
The lender announced it would scale back its premium finance division earlier this month in a bid to shift focus onto commercial lines such as property, cyber and liability insurance, and away from personal lines like home, car and travel insurance.
The bank said the move would create annual savings of £20m by 2030, with the original switch to cost £15m.
The operations overhaul comes as Close Brothers awaits the landmark motor finance ruling from the Supreme Court.
The bank took its fight to overturn the Court of Appeal’s October ruling, which found it unlawful for banks to pay a commission to a car dealer without the customer’s informed consent, to the highest court in the land in April.
Close Brothers has set aside £165m in provisions, but RBC analysts project that a downside verdict could result in costs climbing to over £400m.