Brewer Green King gets into Scotland, acquires Belhaven |
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Published
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Mon, 29 Aug 2005 16:05
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LONDON: Britain's leading brewer and pub owner Green King is slated to get a foothold in Scotland. It is acquiring rival Dunbar-based Belhaven, Scotland's largest independent brewer, for 187 million pounds. Together with its debt of 67.1 million pounds, the deal is valued at 254 million pounds.
Green King agreed to pay 625 pence per share of Belhaven, which is a 15.6 per cent premium to he latter's closing price Friday. The company said it is raising 47 million pounds through a share placing to help fund the deal.
Belhaven has recommended the takeover to its shareholders, describing the deal as a "hand in glove fit". Chief executive Stuart Ross said the cash offer reflects the quality of the company's business and the board unanimously recommends that it is in the best interests of our shareholders.
Founded in 1719, Belhaven owns one of Scotland's oldest and largest regional breweries and operates both a managed and tenanted pub estate and a drinks distribution business. It has its flagship beer brand, Belhaven Best, and it also distributes Tennent's and Stella Artois. The deal provides for the company to keep its name, brands and brewery.
Dubar-based Greene King sells brands like Old Speckled Hen, Abbot Ale and Ruddles County. It has been brewing beer and operating pubs for over 200 years. Its beers have wide appeal both across its own pub estate as well as externally.
The company said it hoped to achieve 3 million pounds in cost savings over the first year, increasing it to 5 million pounds over the following two-year period.
There will be no job loss for Belhaven employees, Green King said. The company's chief executive Rooney Anand said Belhaven will retain everything at the heart of its success, including its name, its brands, and its brewery, but will also benefit from being part of a larger group opening up new markets for its products.
The company has no presence in Scotland. It had earlier bought out family-run brewery TD Ridley for 46 million pounds.
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