Marston's buys Wainwright and Lancaster Bomber brewer Thwaites
Brewer and pub owner Marston's has acquired the beer business of popular Lancashire brewer Thwaites for £25.1m cash.
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Daniel Thwaites will sell the major part of its beer business, including its premium real ale brands Wainwright Golden Ale and Lancaster Bomber and a 150-strong team of regional sales, marketing and distribution staff.
Marston's has been brewing Thwaites' beers since early 2014 and, as part of Tuesday's deal, has agreed to exclusively supply all beer, wine, spirits and minerals to Thwaites' pub estate.
The FTSE small cap company said the acquisition was consistent with its strategy of looking to strengthen its position in popular premium ales with local and regional appeal.
"We are acquiring a very high quality business with good people and brands, and with growth potential," said Marston's chief executive Ralph Findlay.
In the 12 months to last December, Thwaites beer business is estimated to have made operating profit of around £7m before overheads of approximately £2m.
Marston's said it expected the acquisition to be earnings-enhancing in the first full year of ownership, contributing profit before taxation of roughly £1.5m in the current year.
The purchase also gives Marston's a strong sales team that will allow it to capitalise on the developing market for free trade pubs and the rising consumer interest in beer.
Thwaites' beer division, which acquired the Mancester-based Hydes Brewery in 2012, is concentrated in the North West of England, including a 150-strong team operating in the independent free trade, national on trade and national off trade channels.
Wainwright is one of the most popular golden cask ales in the UK and the Lancaster Bomber premium ale has also won numerous awards in recent years.
Both are "highly complementary" to its own portfolio of premium craft and bottled ales, Marston's said.
The transaction is expected to complete on 17 April 2015.