Tennent’s Lager maker sells minority stake in Admiral Taverns pubco
Bulmers maker C&C group intends to sell its entire minority interest in pub operator Admiral Taverns to Proprium Capital Partners for £55m.
The drinks firm invested in the community pub chain in a joint venture with Proporium in September 2017.
In C&C’s full year results published on Tuesday, it revealed the sale of the shares will be completed and the consideration will be paid in three tranches during the 2023 financial year.
Under terms of the divestment, C&C will enter a long-term supply agreement with the Admiral Estate that includes its owned and agency brands.
C&C’s share price was boosted by some six per cent on Tuesday afternoon after announcing it was selling its stake in the 1,600-site strong pub operator.
The maker of Tennent’s Lager posted buoyant financial results for the year to 28 February 2022, posting a net revenue boost of 87.8 per cent to £1.2bn.
The rise was attributed to a 207.8 per cent growth in on-trade net revenue, thanks to Covid restrictions on pubs and restaurants lifting.
Fresh price hikes and a cost savings programme had provided the firm with “a degree of protection against cost inflation,” C&C said.
However, the company warned that “additional input cost pressure,” especially at its manufacturing plants, was likely to “necessitate further price increases.”
Chief executive David Forde said: “The group continues to play a key role in the UK and Ireland drinks market and is well positioned, with a market leading platform and a position of financial strength to drive sustainable growth and create long-term returns for our shareholders.”