City Comment: Hamish Champ

"A disaster." The assessment, put to me by the chief executive of a regional family brewer last week, of the agreed takeover of Hardys & Hansons by Greene King. Strong words, but a sentiment perhaps shared by many across the family-run brewing sector following the announcement of the £270m-plus deal.

The sale of H&H came as little surprise to industry watchers, yet the felling of another established brewing name merely adds to the siege mentality that many in the sector are currently experiencing.

It's not just the "hoovering up" of assets - or the perception thereof - that gets people huffing and puffing, although Greene King's knack of swooping down upon the country's brewing heritage doubtless curdles the blood in many an oak-panelled boardroom. There's also the price involved. That Greene King was prepared to pay a historic EBITDA multiple of more than 15 times for the Nottingham-based brewery and its 250-plus pubs is noteworthy. True, synergy benefits could bring this down to below 10 times on future earnings, and Greene King's track record of squeezing savings from an acquired business is certainly exemplary. Still, the price paid is yet another marker that it is prepared to be aggressive in the market to get what it wants.

So what future for family-owned regionals? Where they are run by families as well as owned by them, and where there's no desire and need to sell, these companies will surely remain independent for the foreseeable future. Otherwise - and yes, I know it's stating the bleedin' obvious - however much one laments the passing of a couple of hundred years of heritage and all that goes (or went) with it, if the will to continue is outweighed by a significant financial reward then heritage, tradition and values go the way of the Great Auk.

And if you think that's cause for a furore, just think what'll happen when we're drinking from metric glasses and not pints...