C&C GROUP, the drinks firm behind Glasgow-based Tennent’s Lager, has secured a major route to market for its brands after investing £37 million to acquire a minority stake in Admiral Pub Company.
The Dublin-based company has joined forces with Proprium Capital Partners and Admiral’s management to buy out the 845-pub company, with C&C taking a 47 per cent stake.
It marks a major return to pub investment for C&C, which has owned Tennent’s since acquiring the Glasgow brewer for £180m from AB-InBev in 2009.
A takeover approach for Spirit Group was rebuffed in 2014 before the pub giant was snapped up by Greene King. Prior to that, C&C, through Tennent’s, held a 25 per cent stake in Maclay Inns before it was bought out of administration by Stonegate Pub Company in 2015. C&C is a significant provider of loan facilities to the Scottish independent pub trade.
The company, which also owns Magners cider, said the Admiral deal will “deliver significant economic and route-to-market benefit” to its business in the UK.
The bulk of the Admiral estate is in England and Wales, with a broad geographic spread. Some 95 per cent of the pubs are owned freehold or long leaseholds, said C&C, which has funded the deal from existing resources. The remaining equity is held by Proprium and the Admiral management, which will continue to lead the business.
C&C boss Stephen Glancey said: “For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK.”
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