Greene King to close brewery in pounds 219m takeover of Morland
Wednesday 23 June 1999
Greene King said it would close Morland's brewery at Abingdon, with the loss of 100 jobs, transferring Ruddles and Old Speckled Hen, Morland's biggest brands, to its own brewery in Bury St Edmonds.
After taking on a tranche of debt, Greene King will pay a total consideration of pounds 145m, or 445p a share, a 20 per cent premium to Morland's share price before talks were disclosed. Morland shares rose 4 per cent to close at 436.5p.
Tim Bridge, chief executive of Greene King, said the deal would yield pounds 6m to pounds 8m a year of savings for shareholders. The cost of achieving the savings would be pounds 8m to pounds 10m.
The deal will give Greene King control of 285 tenanted pubs and 123 managed houses, most of them located in the Thames Valley. It will also have four of the country's leading cask ale brands - Abbot, Ruddles, IPA and Old Speckled Hen. "Greene King is now a very different animal than it was a few years ago. This deal is just another part of the jigsaw to becoming the South's leading pub and cask ale operator," Mr Bridge said.
The deal follows the group's purchase of 165 pubs from Wolverhampton and Dudley breweries, the victor in the recent hostile takeover battle for Marston, Thompson & Evershed. The deals will give Greene King a total of 1,670 managed pubs. It will also leave the group with heavy debts, with gearing standing at more than 90 per cent, up from 50 per cent last year.
However, executives said strong cash flow meant the debts were manageable. Its shares were unchanged yesterday at 676.5p. Mr Bridge it was likely some of the managed pubs would be disposed of to help reduce debts.
Martin Mays-Smith, chairman of Morland, said: "We view the prospect of Morland losing its independence with sadness, but recognise the pressures that exist for consolidation in the regional brewing sector."
- 1 Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
- 2 Frank Lampard equalises for Manchester City against Chelsea: how Twitter reacted
- 3 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 4 Free U2 album: How the most generous giveaway in music history turned PR disaster
- 5 Britain First picture: Photographer 'horrified' after first Afghan policewoman killed by Taliban used for 'ban the burka' campaign
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Jennifer Lawrence leaked 4Chan sex video branded 'fake' by forum users
Gabrielle Union contacts FBI over nude 4Chan pictures leaked by 'vultures'
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...