Marston’s piques private equity interest

29-Jan-2021 - Last updated on 29-Jan-2021 at 12:44 GMT

Related tags Marston's pub company Private equity

Brewer and pubco Marston’s has confirmed reports that Platinum Equity has made an initial approach to take the company private.

As reported by Bloomberg earlier today (29 January), Marston’s received an unsolicited non-binding proposal from the American private equity firm regarding a possible cash offer for its share capital.

Marston’s has since confirmed the news, stressing that while it will evaluate the proposal, there can be no certainty that any firm offer will be made, nor as to the terms on which such an offer might be made.

With deliberations ongoing, Marston’s has called on Platinum to announce either its firm intention to make an offer or state that it does not wish to make one no later than 5pm on 26 February.

Upon Bloomberg’s initial report at around 10.30 am today (29 January), Marston’s shares increased as much as 30%, giving the company a market value of about £589m.

In its most recent financial update earlier this month, the group reported pub revenues of £54m in the 13 weeks ended 2 January 2021.

Last year Marston completed a joint venture with Carlsberg UK in a deal that valued Marston’s Brewing Business at £580m.

In December it also struck a deal to operate SA Brain’s 156-strong Welsh pub portfolio on a combination of leased and management contract arrangements.