Mitchells buys York Brewery

North west-based Mitchells of Lancaster has purchased the York Brewery and its four tied pubs for an undisclosed sum.

The deal means a return to brewing for Mitchells which closed its own brewery in Moor Lane, Lancaster, eight years ago.

Mitchells says the York Brewery will be run as a wholly owned subsidiary and its operations will continue as before.

The acquisition brings Mitchells's own tied estate to the 65 mark which includes the recent purchase of the Wilton at Belmont near Bolton from Mitchells & Butlers.

The company says the deal will give York major opportunities to grow its own volumes by supplying pubs in its own estate which is primarily around the Lancaster area.

York Brewery was founded in 1996 and produces about 100 barrels per week, a quarter of which is currently supplied to its four pubs.

"We will be making an investment in York's pubs and extending beer supply into our own estate.

"This deal gives us the chance to return to brewing in a smaller, controlled scale than before," said joint managing director Jonathan Barker.

"Its an exciting deal which gives both parties major opportunities," he added.