Breweries and Distilleries

US equity firm eyes Marston’s takeover

Despite its year-on-year revenues falling dramatically for Q1 2020, the firm ensures it has ‘significant liquidity’

Marston’s, the brewery, pub and hotel operator, is reportedly subject to a takeover approach from the US-based private equity investment firm, Platinum Equity.

According to Bloomberg, Marston’s revealed on Friday 29 February that Platinum put forward an unsolicited, non-binding proposal of a possible cash bid to the group.

The company’s board is said to be evaluating the proposal with its advisors, but ensured that there is “no certainty of an offer”.

The proposal represents a growing line of equity firms looking to gain access to the UK’s depleted pub market.

Last week, industry stalwarts Mark McQuarter and Mark Crowther matched the investment intentions of former Greene King boss, Rooney Anand as they looked to build funds for a sector-wide spending spree once Covid-19 restrictions are eased.

Lockdown measures have vastly impacted the 180-year-old brewery, Marston’s Q1 2020 revenues fell to £54m from sales of £1.17bn in 2019.

However, the firm has gained “significant liquidity” through its merger with Carlsberg which brought in an initial fund of £233m.

According to Bloomberg, it is this liquidity paired with the group’s £2.2bn enterprise value which could attract interest from other private equity buyers.

Catering Today has contacted Marston’s for comment.

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