Heineken UK has announced that it has agreed to sell 111 pubs from its Star Pubs & Bars business to Admiral Taverns for an undisclosed sum. The sale is expected to complete during October 2014. Alongside the sale agreement, the two parties have agreed that Heineken will continue to offer its market leading ciders and beers to these 111 pubs.
The agreement follows Heineken’s regular review of its pub estate and stated ambition to build a portfolio of pubs that have a more specific identity and profile. Following completion of the sale, the Star Pubs and Bars business will comprise an estate of around 1100 pubs across the UK.
Commenting on the deal, David Forde, Heineken's UK Managing Director, said: “This sale frees up resources and enables us to focus on the core estate which has great scope for growth whilst continuing to showcase our cider and beer brands. We regularly review our estate to ensure that our portfolio contains pubs that have the right profile for our business, and can continue to benefit from our long term investment. Seeking a respected and experienced trade buyer for the sale of these pubs was our preferred option and we are delighted to have achieved that ambition with Admiral Taverns. They will ensure commitment and continued investment in these pubs to drive growth and maximise their potential. "
Heineken recently announced an £18 million investment in its Star Pubs & Bars estate during 2014, through a programme of modernisation, refurbishment and product quality initiatives.
Kevin Georgel, Admiral Taverns’ Chief Executive Officer, commented: “We are delighted to acquire these high-quality pubs, which are a great addition to the Admiral estate. This transaction is an indication of our intention to develop the Admiral business and reinforces our position as the country’s leading community pubs group. We look forward to welcoming these new licensees to Admiral, and to working with them and Heineken to ensure a smooth transition.
“We are confident that these pubs have a vibrant future, and that with our award-winning approach to supporting community pubs, we can help these licensees to maximise the potential of their businesses.”