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C&C Group JV acquires Admiral Taverns from Cerberus Capital Management

DBR Staff Writer Published 05 September 2017

A joint venture of C&C Group, Proprium Capital Partners and Admiral Taverns Management has acquired the UK leased and tenanted pub company Admiral Taverns from Cerberus Capital Management.

Admiral Taverns owns and operates around 845 wet-led pubs across England and Wales. The company is claimed to have achieved strong operational performance under Cerberus ownership.

The pub company has also invested in strategic initiatives such as acquiring and integrating a portfolio of 111 pubs from Heineken UK.

Cerberus senior managing director and International Real Estate Head Ronald Rawald said: "Since 2012, Cerberus has partnered with the exceptional management team at Admiral Taverns, led by CEO Kevin Georgel, to strengthen and expand the business for the benefit of our investors and Admiral's stakeholders, including consumers, tenants, and communities.

"Today, Admiral is the U.K.'s number one community pub group and is poised for continued and sustainable success. We are proud of what we have accomplished through our partnership with the Admiral team and continue to believe the U.K. pub sector is an attractive segment for long-term investors."

On the other hand, C&C Group stated that it has invested £37m, which is 47% of the issued capital of Admiral. Once the acquisition is completed, Admiral will become an associate of C&C.

As per C&C, the investment can offer it significant economic and route-to-market possibilities to its UK business. The company will now have direct access to 845 pubs across England Wales. Most of these pubs are either freehold or long leasehold, predominantly in suburban and city locations and are operated as tenanted estate.

C&C Group CEO Stephen Glancey said: “The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable. C&C has a long and successful track-record of supplying and providing financial support to local pubs within the independent free-trade in Scotland and Ireland.

“In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.

“Admiral management has a proven track record in balancing these returns with the needs of their tenants and consumers. Today’s new arrangements will enhance choice for both tenants and consumers and provide a platform for further growth at Admiral.”

Financial terms of the transaction have not been disclosed.

Last year Admiral earnings before interest taxes depreciation and amortisation (EBITDA) was £25.2m and the EBITDA margin was 36.2%. Its gross assets during the same period were £231.8m and gross property assets were valued at £244.3m.

Image: C&C Group joint venture acquires Admiral Taverns from Cerberus Capital Management. Photo: Courtesy of dan/FreeDigitalPhotos.net.