The business currently generates run-rate EBITDA of approximately £4 million.
Investment in the pubs is planned over the next two years which will naturally
have a short-term impact on profitability but should have a positive impact
thereafter. Therefore, in the first full year of ownership, the pubs are
expected to trade at the current run-rate, subject to the impact of any
investments undertaken.
The pubs will complement the Young’s managed house estate both in and around
London, build upon a growing presence in the South West and further enhance
the Young’s brand. Each of the pubs has a premium offering and distinctive
personality that differentiates it in its local market. As a result of the
transaction, the Young’s managed estate has increased by 8% from 185 to 200.
With 70 tenanted pubs in its Ram Pub Company, the total Young’s pub estate
will increase to 270 pubs.
The Redcomb estate comprises the following pubs:
Freeholds Leaseholds
Alphabet, Islington
Bickley, Chislehurst
Boat House, Instow
Cherry Tree, East Dulwich
Carnavon Arms, Highclere
Coach & Horses, Greenwich
Manor Arms, Streatham Market
Seagate, Appledore (including 18 The Quay) Lockhouse, Paddington Basin
Theodore Bullfrog, Charing Cross (part Old Shades, Whitehall
freehold / part leasehold)
Old Manor, Potters Bar
Village Inn, Ealing
Station Hotel, Hither Green
Worplesdon Place, Guildford
The acquisition has been financed through existing debt facilities with
Barclays and HSBC. Young’s retains a strong balance sheet following the
acquisition and a robust long-term financing package.
Commenting on the acquisition, Patrick Dardis, Chief Executive of Young’s,
said:
“The team at Redcomb, headed by Dan Shotton and Mark Draper, has created an
outstanding, well -invested estate of pubs, which we are delighted to add to
the Young’s fold.
The acquisition of these pubs represents an excellent opportunity to continue
the growth of the Young’s managed estate. They fit very well with our
expansion strategy which is focussed on high quality managed houses. These
pubs are all in prime locations, where our premium offer will work extremely
well.”
Anthony Schroeder
Company Secretary
Wednesday, 23 January 2019
Tel: 020 8875 7000
Contacts:
Young & Co.’s Brewery, P.L.C. 020 8875 7000
Stephen Goodyear, Chairman / Patrick Dardis, Chief Executive
MHP Communications (PR adviser) 020 3128 8742
Tim Rowntree / Alistair de Kare-Silver
J.P. Morgan Cazenove (AIM nominated adviser) 020 7742 4000
James Mitford / Behzad Arbabzadah
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190122006042/en/
Contact:
Young & Co's Brewery PLC