FDBusiness.com

Fuller, Smith & Turner, the UK brewing, pub and hotel group, has agreed to sell its entire beer business to Asahi Europe, a wholly owned subsidiary of Asahi Group Holdings, for an enterprise value of £250 million on a debt free, cash free basis.

The business being sold comprises the entirety of Fuller’s beer, cider and soft drinks brewing and production, wine wholesaling, as well as the distribution facilities, and also includes the Griffin Brewery, Cornish Orchards, Dark Star Brewing and Nectar Imports. Asahi Europe will acquire the brands of the Beer Business (including London Pride) and will receive the benefit of a licence, on a perpetual, global, exclusive and royalty-free basis, to use certain trade marks (including the Fuller’s name, logo and cartouche) for the provision of beverages. Ownership of the licensed trade marks will be retained by Fuller’s.

The enterprise value of £250 million, represents a multiple of 23.6x EBITDA (of £10.6 million for the 52 weeks ending 31 March 2018).

Following completion of the proposed disposal, Fuller’s will be a focused, premium pub and hotel operator. Fuller’s will enter a supply agreement with Asahi that will ensure continued supply of beer and cider. The deal is expected to complete in the first half of 2019.

Simon Emeny, chief executive of Fuller’s, comments: “This deal secures the future of both parts of our business including protecting the heritage of the Griffin Brewery in Chiswick, which was particularly important to the Fuller’s board. We remain incredibly proud of the Fuller’s Beer Business, its history and the high quality premium beer and cider portfolio that we have developed. Brewing has formed an integral part of our history and brand identity, however the core of Fuller’s and the driver of our future growth is now our premium pubs and hotels business.”

Akiyoshi Koji, chief executive of Asahi Group Holdings, says: “We have long admired the brewing business and exceptional beer brands that Fuller’s has built over the years and the high degree of respect it commands throughout the global beer industry. Fuller’s is one of the few brewers that show the same genuine commitment to brewing excellence and quality that we do. We strongly believe that the brands of the Beer Business, including London Pride, Frontier and Cornish Orchards among others, complement our premium portfolio in the UK market. In particular, London Pride is a fantastic brand with an illustrious heritage dating back to the 1950s and we are excited about its untapped international potential which Asahi has the scale and global network to unlock.”