Statement re Minority investment in Admiral Tav...

About this update from C&c Group Plc

[{"type":"text","content":"\n \n \n Statement re Minority investment in Admiral Taverns\n \n \n\n \n C&C Group PLC\n \n \n\n \n \n \n Minority Investment in Admiral Taverns(“Admiral”)\n \n \n C&C Group plc (“C&C”), announces that in partnership with Proprium \n Capital Partners and Admiral management, it has agreed to acquire the \n entire issued share capital of Admiral.\n \n \n The equity investment by C&C is £37m representing 47% of the issued \n capital of Admiral. The investment will be funded from existing C&C \n facilities and Admiral will be accounted for as an associate of C&C.\n \n \n Investment highlights\n \n \n C&C believes that the investment will deliver significant economic and \n route-to-market benefit to its GB businesses through:\n \n \n \n collaboration with a highly experienced and skilled management team;\n \n \n participation in a resilient and growing earnings stream from a \n quality, tenanted pub estate;\n \n \n direct access to 845 pubs1 mainly across England and Wales, \n through a procurement and supply agreement;\n \n \n mid-single digit earnings accretion and attractive returns on equity \n in the first full financial year following completion; and\n \n \n a long term commitment from our partners to develop the business.\n \n \n \n The Admiral business\n \n \n Admiral currently owns and operates 845 pubs, mainly in England and \n Wales, with a broad geographic distribution. The pubs are 95% freehold \n or long leasehold, in predominantly suburban or city locations and are \n operated as a tenanted estate.\n \n \n The management team at Admiral will remain invested and continue to lead \n the business. They are well regarded within the industry and Admiral has \n won multiple industry awards and has received consistent recognition \n from its tenants for its forward looking, operational approach.\n \n \n In Admiral’s latest audited accounts for the 52 weeks ended 28 May 2016, \n the group had underlying EBITDA of £25.2 million and an underlying \n EBITDA margin of 36.2%. As at 28 May 2016, the gross assets of the \n Admiral business were £231.8m and the gross property assets were valued \n at £244.3m.\n \n \n Financing\n \n \n C&C is investing £37m, representing 47% of the issued capital of \n Admiral. The remaining equity is provided by Proprium Capital Partners \n and Admiral ...

More updates from C&c Group Plc