£206m deal marks final order for Marston’s brewery joint venture

Marston’s has sold its brewing assets for £206m and plans to transform itself into a company focused solely on pubs.

A 40% stake in Carlberg Marston’s Limited (CMBC) has been acquired by a Carlsberg subsidiary for cash, four years after the formation of the joint venture.

CMBC was formed to combine the drinks offering and extensive distribution networks of the Marston’s and Carlsberg brands in a £780m merger.

Marston’s believes CMBC is well positioned for future success as a market leader under the sole management of Carlsberg, but the company faces a number of unforeseen macroeconomic and socioeconomic factors, including Covid-19, higher operating costs and inflation.

This will also be impacted by San Miguel’s decision to renew its production and distribution licensing agreement with CMBC in the UK, which will run beyond the end of 2024.

Marston’s exit means the company will create a hospitality business focusing on its 1,370 pub network, while retaining its long-term distribution agreement with CMBC as a key supplier and strategic partner.

Justin Platt, Chief Executive Officer, commented: “Today’s announcement marks a significant milestone for Marston’s as we realise our stake in CMBC. Over my first six months at the company, it has become clear to me that our core capability and key opportunity to unlock shareholder value is to operate a focused and successful pub business.

“This agreement further strengthens our balance sheet, significantly reducing our debt by over £200 million. Additionally, CMBC remains a valued strategic partner and we continue to benefit from our ongoing long-term distribution agreement with them. Crucially, it allows us to become a pure hospitality business and focus on what we do best – delivering an amazing pub experience for our guests. I look forward to leveraging the opportunities that a focused pub business will provide us with to ensure we maximise value for our shareholders.”