Marston’s, formerly Wolverhampton & Dudley Breweries, has announced that it has acquired Sovereign Inns for £19.4m.
Sovereign Inns comprises an estate of 33 freehold pubs located principally in Yorkshire, Nottinghamshire and Lincolnshire.
Fleurets handled the sale on behalf of Sovereign.
The disclosure of the deal comes after yesterday’s announcement by the group that it had acquired the 153-strong Eldridge Pope pub and bar estate for £155.1m.
In a statement the company said that like-for-like sales in Marston’s Inns & Taverns, its managed pub division, increased by 7% for the 16 weeks to 20 January 2007 compared to the same period last year.
As previously reported, like-for-like sales were 9.1% ahead of last year in the eight weeks to 25 November 2006, and in the following eight weeks to 20 January 2007 were 5.2 % ahead of last year.
The group said that strong growth in food sales contributed to this good performance.
In Marston's Pub Company, its tenanted and leased pub division, the company said that trading has remained good and is ahead of last year.
It also reported that its Marston's Beer Company achieved strong volume and market share growth in premium ale against a weak beer market overall, with total beer volumes marginally below last year.
Ralph Findlay, chief executive, said: “Our good start to the new financial year continued over the Christmas and New Year trading period.
“Overall, our performance and cash flow has been in line with our expectations.”
Marston's said it had acquired 39 tenanted or leased pubs since the start of its financial year on 1 October 2006, including the acquisition of Sovereign.
The company said that its new-build programme in its managed division is progressing well, with six new pub openings in Brighton, London, Hertfordshire, Cheshire, Nuneaton and Bristol during the period.
It also said that its preparations for the smoking ban are well advanced in both Marston's Inns and Taverns and Marston's Pub Company.
The group said that by the time a ban is introduced in Wales and in England it will have invested approximately £20 million in outside areas, mainly in pub gardens and patios – facilities, which are available in around 90% of its pubs.
As stated before Christmas, the company aims to return around £100m to shareholders this financial year notwithstanding the acquisition of Eldridge Pope, subject to retaining flexibility to make acquisitions should suitable opportunities arise.
