£155.1m acquisition of Nouveaustar Limited (“Eldridge Pope”) from Michael Cannon

Marston’s has acquired Eldridge Pope for £155.1m from Michael Cannon. The business includes the original Eldridge Pope pub business acquired by Michael Cannon’s investment company SDA Limited in 2004, together with the Que Pasa high street brand, and Fairdeed Limited, a wholesale business which distributes packaged products and wines and spirits to the Eldridge Pope pub estate.

Since its acquisition by Michael Cannon, the Eldridge Pope business has been rationalised and developed into a high quality pub estate. Eldridge Pope will have a continuing estate of 135 pubs based predominantly in Southern England, and 18 sites to be disposed of. The continuing estate includes 95 managed pubs and 40 tenanted pubs, with freehold pubs contributing c.80% of outlet EBITDA.

As part of the funding of the acquisition, Marston’s has replaced its existing £275m corporate banking facility with £400m of new facilities.

The Eldridge Pope estate is seen as an excellent geographical and operational fit for Marston’s existing estate and the acquisition is expected to be earnings enhancing in the first full financial year following the acquisition.

McQueen acted as financial adviser to Marston’s.

Enquiries:
George Fleet 020 7484 8800

For the full text of the announcement click here