Marston's buys rival Eldridge Pope

25 January 2007 by
Marston's buys rival Eldridge Pope

Pub company Marston's has bought South England based rival Eldridge Pope, owner of the Que Pasa high street chain, for just over £155m.

Marston's, previously Wolverhampton & Dudley Breweries, said the 153 pubs would make "an excellent fit" for its expanding business and the acquisition would boost earnings within the first year.

Marston's plans to dispose of 18 Eldridge Pope sites for up to £10m over the next 12 months. The 135 remaining pubs in the Eldridge Pope estate will consist of 95 managed sites and 40 tenanted pubs.

Ralph Findlay, chief executive of Marston's, said: "We are delighted with the acquisition of Eldridge Pope. It has invested significantly in the business in recent years, and offers a high quality well managed estate which complements our existing business both operationally and geographically."

Food at the acquired managed pubs, the majority of which consist of community style boozers, represents 30% of total turnover.

Marston's has paid the majority of the deal in cash, with £17.1m of debentures and loan notes also issued. As part of the deal, it has also replaced its existing £275m corporate banking facility with £400m of new facilities.

The deal is expected to save £800,000 in annual purchasing costs, with Eldridge Pope's central overhead costs reduced from £5m to £2.9m.

In the second year of ownership, Marston's expects to save another £1m in purchasing costs.

Current trading At Marston's Inns & Taverns, its managed division, like-for-like sales were 7% ahead of last year in the 16 weeks to 20 January. The company added that its tenanted and leased division, Martson's Pub Company, had seen good trading ahead of last year.

Wolverhampton & Dudley Breweries switches off Sky Sports >>

Expansion is key to success for Wolverhampton & Dudley >>

W&D reacts to increasing cost pressures >>

Wolverhampton & Dudley Breweries buys Celtic Inns >>

Marston's website >>

Cannon primed to take control of Eldridge Pope >>

Eldridge Pope website >>

By Chris Druce

E-mail your comments to Chris Druce]('s buys rival Eldridge Pope) here.

Get your copy of Caterer and Hotelkeeper every week -

[Sudoku]( "A new puzzle every day!") Join the craze and play Sudoku online!
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking