UK pub deal can help C&C get back on track
Analysts have reacted positively to C&C's move into the pub business. The deal could finally see the low-tide stain that was C&C's foray into the US recede from investors' memories. C&C slashed the value of its North America assets by €129m last year to €45m.
But it's the Admiral Taverns deal that C&C hopes will now play a key part in a growth story. "For C&C, this is an attractive opportunity to create a new long term investment in the important on-trade channel, without taking significant financial and operational risk," said chief executive Stephen Glancey.
There are a number of pub portfolios in Britain for sale, and it will be interesting to see if Admiral makes moves on them to expand its footprint.
Admiral Taverns generated revenue of £69.5m (€75.6m) in the financial year to May 28, 2016 - the last year for which audited accounts are available. It made an operating profit, excluding exceptionals, of £21.9m (€23.8m) that year.
Admiral directors noted that the group business model "balances risk and reward" and gives licensees "the freedom to respond to the challenges and opportunities within their local market".