Marston’s sells off 137 pubs for £45m as it looks to slash debt pile
Marston’s has offloaded 137 pubs to Admiral Taverns in a deal worth almost £45m.
As part of a plan to slash its debt by £200m over the next four years, the British brewery giant has sold a portfolio of pubs that contributed operating profit of £3.7m in the last 12 months.
Read more: Pubs cash in on bank holiday heatwave but fears for sector grow
The pubs, which are expected to be handed over later this month, have a book value of £62.7m.
Last month Marston’s, which runs the Pitcher & Piano bars brand, said it expected full-year profits before tax to be lower, as weaker food sales and rising costs dented its balance sheet.
Marston’s boss Ralph Findlay said in a statement this morning: “We are encouraged by the level of market interest that this portfolio of pubs has attracted.”
He added: “This further underpins our confidence in achieving the accelerated £70m disposal proceeds target that we have set ourselves for the current year.”
Read more: UK economy to hit decade-low even with Brexit deal, report warns
The pub operator currently has an estate of 1,537 pubs, comprising managed, franchised and leased pubs.
Marston’s share price edged down 0.3 per cent to 122.9p.
Chris Jowsey, boss of Admiral Taverns said: “We remain fully committed to the leased and tenanted model and through this acquisition have been able to acquire an excellent portfolio of pubs.”