YOUNG & CO.S BREW.: Disposal
12 Julio 2021 - 1:03AM
UK Regulatory
TIDMYNGA
Information within this announcement is deemed by Young's to
constitute inside information under the UK Market Abuse
Regulation.
Young & Co.'s Brewery, P.L.C.
("Young's" or the "Company")
Disposal of 56 tenancies for GBP53M
Young's, the operator of premium, individual and differentiated
pubs, announces the agreement to sell most of its tenanted estate,
the Ram Pub Company (the "Disposal").
Details of the Disposal
Young's has agreed to sell 56 of the 63 pubs in the Ram Pub
Company to Punch Pubs & Co. for a total consideration of GBP53M
in cash, having generated EBITDA of GBP4.7M for the year ended 31
March 2019. Young's will retain the remaining seven pubs for the
long term.
Background to the Disposal
As part of its strategy to create long-term sustainable
shareholder value, Young's regularly reviews its capital allocation
priorities. Following the review, the Board decided that the best
way to increase value for shareholders was to withdraw from the
tenanted model and focus solely on operating premium, individual,
differentiated and predominantly freehold managed pubs and
hotels.
Benefits of the Disposal
The Disposal is consistent with Young's strategy to target
growth through investment in higher turnover managed pub and
hotels.
The following benefits will accrue to Young's from the
Disposal:
-- Net proceeds from the sale will be used to strengthen the Company's
balance sheet and provide additional capacity for investment in its
managed estate
-- Young's will look to acquire predominantly freehold managed pubs
-- By focussing on its managed house estate, head office costs will reduce.
Completion
Completion of the Disposal is expected to occur 9 August
2021.
Patrick Dardis, Chief executive of Young's, said:
"Young's sole focus will now be on operating well-invested and
premium managed pubs and hotels. We have a proven history of making
attractive returns from investing in high-quality pubs and this
disposal will provide us with additional firepower to upgrade our
existing pubs and capitalise on attractive acquisition
opportunities that may come to the market.
"During lockdown, we invested a total of GBP17M in improving the
pubs in our managed estate and the purchase of two new pubs:
Enderby House in Greenwich and Alban's Well in St Albans.
"We are delighted to be welcoming back our customers and are
already seeing encouraging trading, despite some restrictions
remaining. The Board is confident Young's will emerge from the
pandemic in a stronger position and is excited about the future of
the business."
-ENDS-
Chris Taylor
Joint Company Secretary
12 July 2021
Tel: 020 8875 7000
For further information, please contact:
Young & Co.'s Brewery, P.L.C.
Patrick Dardis, Chief Executive
Michael Owen, Chief Financial Officer 020 8875 7000
J.P. Morgan Cazenove (AIM nominated adviser and joint
broker) James Mitford / Ameya Velhankar 020 7742 4000
Panmure Gordon (joint broker)
Erik Anderson 020 7886 2500
MHP Communications Tim Rowntree/Alistair de
Kare-Silver/Robert Collett-Creedy 020 3128 8742 / 8147
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210711005041/en/
CONTACT:
Young & Co's Brewery PLC
SOURCE: Young & Co's Brew.
Copyright Business Wire 2021
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