4th Nov 2019 08:54
(Alliance News) - Marston's PLC said Monday it agreed to sell 137 pubs for GBP44.9 million to Admiral Taverns in a bid to cut its debt load.
The FTSE 250-listed brewer and pub operator said the sale was in line with its plan to sell non-core assets in order to reduce debt levels. The assets being sold are smaller leased, tenanted and franchised pubs which are wet - or drinks - led rather than food led.
The sale is expected to completed before the end of November.
"We are making good progress with our plans to reduce our net debt by GBP200 million by 2023 in part through the disposal of non-core assets," Marston's Chief Executive Officer Ralph Findlay said.
"We are encouraged by the level of market interest that this portfolio of pubs has attracted," Findlay added. "This further underpins our confidence in achieving the accelerated GBP70 million disposal proceeds target that we have set ourselves for the current year."
For the year ended September 28, the pubs generated GBP4.8 million in earnings before interest, taxes, depreciation & amortisation. Over the same period, Marston's reported Ebitda was broadly in line with the GBP222.6 million reported the year prior.
Net debt at the end of September stood at GBP1.40 billion.
Shares in Wolverhampton-based Marston's were 0.2% higher at 124.30 pence in London on Monday.
By Ahren Lester; [email protected]
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