- Fuller’s revealed it would sell sites from its leased and managed inn division
- Admiral’s estate will also expand to more than 1,400 predominantly wet pubs.
Fuller, Smith & Turner has agreed to hand over dozens of pubs to Admiral Taverns for £18.3m.
The west London brewery and pub group told investors on Wednesday it would sell 37 sites from its leased and managed inn division to the Chester-based company at a £1.6m premium to gross value of its assets.
Fuller’s said the sale would strengthen its balance sheet and support investment in its existing pub and future deals.
Takeover deal: Fuller, Smith & Turner agreed to sell dozens of pubs to Chester-based Admiral Taverns for £18.3m
Once the deal closes, expected on June 25, Fuller’s portfolio will comprise 154 leased inns and 179 managed pubs and hotels.
Admiral’s ownership will also expand to more than 1,400 predominantly wet pubs across the UK, of which around 300 will be situated in the south-east of England.
The business has expanded significantly through acquisitions since private equity firm Proprium Capital Partners first invested in Admiral alongside Magner owner C&C Group seven years ago.
It bought sites from pub giant Marston’s and Heineken UK’s hospitality arm Star Pubs & Bars, and acquired more than 650 Hawthorn pubs from NewRiver REIT in 2021 for £222.3m.
Chris Jowsey, Chief Executive Officer of Admiral, said: “Over recent years, Admiral has built a strong track record of generating profitable growth across our estate, underpinned by continued, targeted investment to unlock new opportunities.”
The acquisition deal follows a very strong trading period for Fuller’s, which saw like-for-like revenue rise 11.5 per cent in the 42 weeks ending January 20.
It enjoyed a strong performance over Christmas and New Year, having lost millions in sales during the same period the previous year due to the railway workers’ strike.
Analysts at brokerage Liberum said the business has benefited further from the return of tourists and financial sector workers.
Fuller’s said it is “committed to owning and operating managed and leased pubs as an integral part of the company’s future strategy”.
He added: “However, the company proactively manages its pub property, continually evaluating strategic opportunities and believes that the sale of this portfolio to Admiral allows the company to focus on the development of its retained managed and leased properties.”
Fuller, Smith and Turner Actions They were down 0.3 per cent to £7.08 late on Wednesday morning, but have still grown by around 32 per cent over the past year.