US investment firm poised to make bid for Marston's
A private equity investment firm in the United States is hoping to buy Wolverhampton-based pubs and restaurants group Marston's.
The Marston's board has received an unsolicited non-binding proposal from Platinum Equity Advisors of a cash offer for the entire share capital of the business.
Marston's, a listed company, says it will evaluate the proposal with its advisers and will make a further announcement in due course.
The group, which has nearly 1,400 pubs, sold off its brewing arm to create a joint venture with Carlsberg UK last year.
Its 40 per cent investment in the Carlsberg Marston's Brewing Company, which also has its headquarters in Wolverhampton, would be part of the takeover deal if it goes ahead.
Marston's said; "There can be no certainty that any firm offer will be made for the company, nor as to the terms on which any firm offer might be made."
It is not making any other statement about the potential takeover at this stage.
Los Angeles-headquartered Platinum's portfolio includes Livingston, Mad Engine, Cision, Valpak and Clipper Windpower.
Marston's £780m joint venture with Carlsberg UK completed at the end of October, and just before Christmas Marston's signed a contract to take over the running of more than 150 SA Brain pubs in Wales. That deal is expected to close next month.
Platinum is required to either announce a firm intention to make an offer for the company or not by 5pm on February 26 February.
JP Morgan Cazenove is acting as financial adviser exclusively for Marston's.
Specialises
Platinum Equity, founded in 1995 by Tom Gores, specialises in mergers, acquisitions, and operations of companies. It has completed more than 300 acquisitions in a broad range of market sectors.
Marston's, which has its headquarters at Marston's House in Brewery Road, Chapel Ash, posted a loss of £397.1 million for the financial year to October 3.
Sales were impacted by the 15-week closure of pubs from the end of March due to the Covid-19 pandemic.
Revenue slipped from £1.17 billion in 2019 to £821 million last year.
The firm's 1,368 pubs are currently closed during the current coronavirus lockdown.
The company has launched consultations on up to 2,150 job losses to deal with the sales hit due to lockdowns.
Marston has said it aims to reduce debt and is using the £233m from the Carlsberg deal towards that purpose.
Shares in the company surged by more than a fifth immediately after it confirmed the proposal regarding a potential cash offer.
Before the pandemic, a raft of UK pubs firms were the target of private investors who believed there was strong growth and profit potential in the sector.
In 2019, rival Ei Group was snapped up by private equity-backed Stonegate Group, which runs chains including Slug & Lettuce, in a £3 billion deal to create the UK's biggest pub and bar owner.
Later in the year, Greene King was taken private by Hong Kong's CK Bidco in a £2.7 billion deal.
