IRISH drinks company C&C has acquired British pub chain Admiral Taverns in a £220million deal.
The deal will see the Dublin-based firm – which counts Magners and Bulmers cider and Tipperary mineral water among its brands – acquire Admiral’s 845 tenanted pubs across Britain.
The joint venture with Proprium Capital Partners will see C&C invest £37million equity for a 47 per cent stake in Admiral.
The Irish firm hopes that direct access to hundreds of outlets will deliver a significant economic and route-to-market benefit to its British businesses.
While the company’s brands, which also include Tennent’s Lager, are a familiar sight in pubs, the move gives C&C an opportunity to move into pub ownership ‘without taking significant financial and operational risk’.
CEO Stephen Glancy said: “For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk.
“The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.”
He added: “The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable.
"C&C has a long and successful track record of supplying and providing financial support to local pubs within the independent free trade in Scotland and Ireland.
"In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants."
Admiral’s latest accounts for the year until May 26, 2016 reported earnings of £25.2million and gross assets of the £231.8million.
The deal comes after C&C missed out on previous attempts to move into the British pub sector, having expressed an interest in buying the Spirit Pub company and Punch Taverns.
The transaction is subject to FCA approval only and is expected to be completed by the end of November 2017.
