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 also said its net asset value grew in the quarter to the end of June, its first quarter, as it made GBP54.1 million in investments and GBP100.3 million in realisations in its investment portfolio.
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.
Separately on Wednesday, Caledonia said its net asset value at the end of June rose to GBP1.65 billion, up from GBP1.64 billion at the end of March. Its net asset value total return for the quarter was 1.5%.
The company made GBP54.1 million in investments in the quarter and realised GBP100.3 million from its portfolio, including GBP24.0 million from audio equipment maker Bowers & Wilkins and GBP21.8 million from US railroad operator Union Pacific Corp.
Caledonia added that the UK vote to leave the European Union caused significant volatility in markets. However, its holdings in large-cap global businesses and funds specifically operating in Europe, the US and Asia meant it has seen a net asset value boost in June.
"We remain confident that our holdings in defensive, cash generative businesses combined with our limited use of gearing will meet shareholders requirements for capital growth and income over the longer term," Caledonia said.
Shares in Caledonia were up 0.3% to 2,257.00 pence Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Caledonia (CLDN)
Legal & General (LGEN)