Marston’s shares jump after it books £206m windfall from Carlsberg split to focus ‘entirely on pubs’
Pub group Marston’s has sold its stake in Carlsberg for more than £200m as bosses outlined plans to focus “entirely on pubs”.
The London-listed group, which owns more than 1,370 pubs across the UK, said it had sold its 40 per cent stake in the brewing company stake back to Carlsberg for £206m via a statement published this morning.
Marston’s said it was disposing of its stake in the brewing company as part of its strategy to create a “stronger balance sheet” and a “step change in financial flexibility”.
The two companies merged into a joint venture valued at £780m in 2020 after Marston’s shed its brewing operations. The deal included Marston’s six breweries and distribution depots but not its 1,400 pubs.
Before the deal was announced, Marston’s market value was below £200m. Pro forma net debt was £959m at the end of March 2024.
Marston’s CEO Justin Platt said: “Today’s announcement represents a significant milestone for Marston’s as we realise our stake in CMBC. In my first six months with the business, it has become very clear to me that our core capability and key opportunity to unlock value for shareholders is in driving a focused and successful pub business.
“This deal further strengthens our balance sheet, significantly reducing our debt by over £200m.
“In addition, CMBC remain valued strategic partners and we continue to benefit from our ongoing long-term brand distribution agreement with them.
“Crucially, it allows us to become a pure play hospitality business and focus on what we do best – namely, giving our guests amazing pub experiences.
“I look forward to delivering on the opportunities a focused pub business will provide to ensure we maximise value for our shareholders.”
In 2023, Marston’s said it generated £55m of disposal proceeds (net of VAT) from the sale of non-core assets and outlined plans to target around £50m in the financial year 2024.
Commenting on the deal, Panmure Liberum analyst Anna Barnfather noted: “Although this is below £220.7m book value, we see this as strategically positive in accelerating de-leverage (saving £18m of annualised interest)…and creates a pure play pub focussed business with c1,370 pubs.”