Admiral procures 37 tenanted pubs from Fuller's for £18.3m
The cash sale proceeds for the portfolio, which generated £1.3m of profit before tax in the 52 weeks to 30 March 2024, is £18.3 million with a premium of £1.6 million to the gross asset value of £16.7 million.
Admiral, which was crowned Community Pub Operator of the Year at the 2024 Publican Awards, said the move would “strengthen” its portfolio in the South-East as part of its strategy to drive “profitable expansion”.
In addition, the acquisition takes the Chester-based group’s number of pubs in the region to more than 300 and 1,420 in total across the country.
Admiral Taverns CEO Chris Jowsey said: “I’m delighted to welcome our new licensees to the Admiral team, and we’re excited by the opportunity to develop these pubs in partnership together.
Growing profitability
“Recent years have seen Admiral build a strong track record in delivering profitable growth across our estate, underpinned by continuous targeted investment to unlock new opportunities, supporting community pubs to thrive.
“These 37 pubs are an excellent acquisition for our business, increasing our reach in the South-East of the UK.”
Jowsey added the firm focus was to work with licensees to develop their brand range and consumer offer within local neighbourhoods to “maximise” their revenue.
Moreover, the CEO said despite the “complexities of the macro-economic environment”, Admiral was seeing community pubs within its estate, specifically wet-led establishments, “maintain popularity and profitability”.
He continued: “Together, we look forward to growing the profitability of these pubs and ensuring they continue to develop as successful small businesses.
Integral part
“Wet-led, community pubs have demonstrated real resilience over recent times, and we remain optimistic that our nurturing ethos, entrepreneurial licensees and high-quality estate continues to position the Group well to be at the forefront of opportunities in our wider market.”
Meanwhile Fuller’s detailed the proceeds from the sale would “further strengthen” the company’s balance sheet, enabling “additional investment” in its pubs as well as supporting future acquisition opportunities, as appropriate.
The London-based pub operator and brewer, which was advised by Sapient Corporate Finance on the sale, said it was “committed” to owning and operating both managed and tenanted pubs as an “integral part” of its future strategy.
However, it added the company “proactively manages” its pub estate by evaluating strategic opportunities and believes the disposal of this portfolio to Admiral will allow Fuller’s to focus on the “development of its retained managed and tenanted estates”.
The disposal is anticipated to be complete on Tuesday 25 June 2024, leaving Fuller’s with 154 pubs within its Tenanted Division and 179 properties in its Managed Pubs and Hotels Division.
