Charles Wells is selling its brewing business to Marston’s for £55m, a deal that does not include the former’s pubs in the UK and France.
Charles Wells’ Bedford brewery site produces Bombardier, Courage, and McEwan’s. The sale to Marston’s also includes UK distribution rights for Kirin Lager, Estrella Damm, Erdinger and Founders as wells the exclusive global license of the Young’s brand.
In addition, wine merchants Cockburn & Campbell will also transfer but Charlie Wells and John Bull beers will remain part of Charles Wells Ltd.
Employees at the brewery in production, national sales, and brands marketing divisions will transfer to Marston’s.
As a result of the sale, Charles Wells will invest in a small new, Bedford based, brewery to supply beers to its pub customers in the UK and Europe.
Brewing and supply agreements will be made with Marston’s for interim brewing and longer term exclusive pub distribution services.
The announcement for Charles Wells signals an exit from higher volume national sales in favour of a more “local and smaller scale brewing future” in Bedford.
Justin Phillimore, chief executive of Charles Wells Ltd, explained: “We are delighted to have reached an agreement with Marston’s to acquire our brewery and become a close trading partner.
“After a detailed review of our strategy we had decided to re-balance the company more towards retail investment and that meant finding a partner we could work with for the future. There are opportunities for both companies in this deal and we look forward to bringing them to life”
Ralph Findlay, chief executive officer of Marston’s PLC, added: “Marston’s is delighted to have reached this agreement with Charles Wells and is absolutely committed to the future of brewing in Bedford. This agreement offers us opportunities to extend our trading area into new areas.
“The acquisition of the Charles Wells brewing business builds on Marston’s established brewing prowess and is a further step in our objective to develop the leading premium beer business in the UK market, something that Bedford’s Eagle Brewery will play an important part in.”
