LONDON (Alliance News) - Caledonia Investments PLC on Wednesday said it has struck a deal to buy Channel Islands-based pub, restaurants and drinks company Liberation Group Ltd in a deal which values Liberation at GBP118.0 million.
Caledonia will acquire Liberation from LGV Capital, part of Legal & General Group PLC's L&G Capital investment arm.
Liberation operates 94 mainly freehold pubs in the Channel Islands and the south west of England, along with two breweries, Liberation Brewery in the Channel Islands and Butcombe Brewery in England, and three drinks distribution companies.
For the 52 weeks to January 30, Liberation made a GBP1.9 million pretax profit and has GBP112.8 million in gross assets on its books. Trading in the current year has remained steady for Liberation, Caledonia said.
Caledonia, a FTSE 250-listed investment fund, said it will continue to back Liberation's growth both organically and through targeted acquisitions of pubs and pub companies in the south of England. It added Richard Grainger, the former chairman of self-storage company Safestore Holdings PLC, will join the board of Liberation as chairman after completion.
"We believe that with Caledonia's longer-term support Liberation will be ideally placed to take advantage of growth opportunities, both within its existing estate and through further selective acquisitions. Liberation will complement the other defensive, asset-backed and cash generative leisure businesses in our unquoted portfolio," said Duncan Johnson, head of unquoted investments at Caledonia.
Shares in Caledonia were up 0.2% to 2,254.00 pence Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Caledonia (CLDN)
Legal & General (LGEN)