Wolves wins Jennings as profits jump
Wolverhampton and Dudley Breweries (W&DB) has won its takeover bid for Lake District brewer Jennings Brothers.
W&DB declared its 430p a share cash offer unconditional as it announced another rise in profits. In the six months to April 2, underlying pre-tax profits increased by 13.6 per cent to £36m.
W&DB said it now has valid acceptances for more than 82 per cent of Jennings shares. It values the Jennings deal, which includes both the pub estate and the Cockermouth brewery and beer brands, at £67m, including acquired debt of £21m.
Lobby group CAMRA had called on Jennings' shareholders to reject the deal, despite reassurances from W&DB that it plans to keep the brewing operations at Cockermouth.
Reporting its half year results, W&DB said the integration of its last acquisition, Burtonwood, has been completed "ahead of schedule and with increased level of synergies."
Like-for-like sales in the Pathfinder Pubs managed estate increased by 3.1 per cent, while the Union Pub Company tenated business saw like-for-likes increase by 3.2 per cent.
Chief executive Ralph Findlay (pictured) said: "The group has performed strongly in the first-half year. Our ability to integrate acquisitions quickly and effectively has contributed to this good overall performance.
"Trading over the Easter bank holiday weekend and since April 2 has been good and in line with expectations."
Jennings directors, including chairman John Rudgard and chief executive Mike Clayton have stepped down, to be replaced by the W&DB board.
Mr Rudgard said: "We look forward to Jennings' successful business and brands continuing to flourish under the ownership, and with the support, of Wolverhampton & Dudley."
CAMRA's director of breweries campaigning John Holland said the fact that almost 18 per cent of shareholder had not yet accepted means "it is clear that a substantial minority of small shareholders are unhappy with the takeover and have supported CAMRA's campaign to keep Jennings independent."
CAMRA has called for a meeting with W&DB to seek assurances on the Jennings' future as a vertically integrated business.
