Caledonia Regulatory News (CLDN)

CALEDONIA INVESTMENTS COMPLETES THE ACQUISITION OF THE LIBERATION GROUP

On 6 July 2016, Caledonia Investments plc ("Caledonia") announced (under RNS number 4074D) that it had agreed to acquire The Liberation Group Limited (Liberation"), the Channel Islands' market leading pub, restaurant and drinks business in a transaction which valued Liberation at £118m. The acquisition was conditional on the approval of the Channel Islands Competition and Regulatory Authorities, which Caledonia is pleased to advise has now been granted and accordingly the transaction has been completed.

Caledonia has acquired a 97.9% equity stake in Liberation for £71.0m, with Liberation's management team subscribing £1.5m, £0.1m more than originally anticipated. The balance of the acquisition costs has been funded by bank debt totalling £51.0m.

8 September 2016

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Notes for editors:

Caledonia Investments plc

Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of approximately £1.7bn as at 31 August 2016. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 49 years.

In the unquoted arena, Caledonia seeks to invest £25m to £100m in private companies, either on a majority or minority basis, providing a meaningful presence and growth capital supporting double-digit operating margins. Its unquoted portfolio includes Park Holidays (a UK caravan parks operator), Cobehold (a European unquoted investment house), Gala Bingo (the UK market leading retail bingo operator), Seven Investment Management (a provider of discretionary fund management, asset management and self-invest platform services), The Sloane Club (a London residential club) and Choice Care Group (a UK learning disability care homes provider).

For additional information on Caledonia, please visit www.caledonia.com.

The Liberation Group Ltd

Liberation was formed in 2008 following a LGV Capital financed management buy-in/buy-out of the hospitality division of Sandpiper CI, a Channel Islands trading conglomerate (previously CI Traders). Liberation's pub estate however has a history dating back to 1830 and its Channel Islands brewery is 145 years old. In early 2015, it gained its first foothold on the UK mainland through the purchase of Butcombe, the West Country based integrated pub and brewing company.

Liberation currently operates 94 predominantly freehold pubs located in Jersey (45 pubs), Guernsey (26 pubs), Alderney (3 pubs) and mainland UK (20 pubs) as well as owning two breweries, Liberation Brewery (Channel Islands) and Butcombe Brewery (UK). Liberation also owns three drinks distribution businesses, Victor Hugo (Jersey) Bucktrout & Co (Guernsey) and Butcombe (mainland UK).

For additional information on Liberation, please visit www.liberationgroup.com.

Neither the contents of Caledonia's nor Liberation's websites, nor the contents of any website accessible from hyperlinks on these websites (or any other website) is incorporated into, or forms part of, this announcement.