Carlsberg Marston's Brewing Company Formed in New Joint Venture Worth GBP780 Million
May 22 2020 - 9:40AM
Dow Jones News
By Adriano Marchese
Marston's PLC said Friday that it has formed a joint venture
with Carlsberg UK Holdings Ltd. to create the Carlsberg Marston's
Brewing Company, a new U.K. brewer and distribution company.
The British pub operator said its stake in the newly formed
joint venture is 40%, and it will receive a cash equalization
payment of up to 273 million pounds ($333.5 million). It said it
will focus on its pub and accommodation business, while retaining
its 40% interest in a "larger, more attractive" brewing business.
Meanwhile, Carlsberg UK, a division of Danish brewer Carlsberg A/S,
will have the remaining 60% stake in the company.
Marston's said the cash equalization payment will materially
reduce debt outside the securitization and provide additional
financial flexibility.
The joint venture is expected to achieve reported annual cost
synergies of around GBP24 million by the end of the third year
following completion. It expects the joint venture will generate
material additional revenue synergies as well, it said.
The transaction is set for completion in the third quarter of
2020. The company said the joint venture values Marston's brewing
business at up to GBP580 million and the Carlsberg U.K. brewing
business at GBP200 million.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 22, 2020 09:25 ET (13:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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