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12 Jul 2021 07:03
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 £53M
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 £53M in cash, having generated EBITDA of £4.7M 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 estateYoung’s will look to acquire predominantly freehold managed pubsBy 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 £17M 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/
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