FDBusiness.com

Contracts have been exchanged for the purchase of The Liberation Group by Caledonia Investments from LGV Capital for £118 million. Completion is expected over the course of the summer. Liberation, founded in 2008 through a management buy-in led by Mark Crowther and equity backed by LGV, owns and operates a fully integrated pub and drinks business located in the Channel Islands and the West Country in the UK. Its business comprises 94 high quality managed and tenanted pubs, two award-winning breweries and three wholesale businesses. The breweries are located in Jersey and Bristol.

Liberation has grown strongly since 2008. During that time, the pub estate has increased from 65 to 94 outlets, and management has launched the Liberation Ale brand in the Channel Islands, where it is the market-leading brewer, wholesaler and pub operator.

In December 2014, Liberation acquired the Butcombe Brewery and pubs business located near Bristol as a platform for expansion in the UK. Butcombe owns 20 pubs in the West Country in village and suburban locations. Butcombe Bitter is one of the leading cask ale brands in the West Country, available in supermarkets and on draught in the on-trade.

Caledonia is backing the existing management team, providing an additional £40 million of funding for investment in its existing estate and acquisitions in both its heartland in the Channel Islands and the West Country. Richard Grainger will be appointed chair of the group board following completion of the acquisition, succeeding Graham Turner who has served as chairman since 2008.

“We are delighted to have a new partner to provide funds and insight to continue the growth of Liberation where expansion will be focused on the buy-and-build strategy in the UK whilst simultaneously growing and developing our business in the Channel Islands,” says Mark Crowther, chief executive of Liberation. “Our customers want to enjoy great pubs with fabulous beer in their local community, offering value for money. We will continue to deliver that through investment, innovation and excellent customer service. We are excited about the next phase of our development and look forward to working with Caledonia on delivering further success for our new shareholders, employees and customers.”