It was 'splash-the-cash day' for Danish lager giant Carlsberg. In one announcement it said would pay £3.3 billion for British mixers group Britvic PLC (LSE:BVIC), in another it was revealed to be acquiring the rump of a drinks joint venture with publican Marston’s PLC (LSE:MARS)
It is handing over £206 million to the owner of the Pitcher and Piano chain for a 40% stake in Carlsberg Marston's (CMBC). That's a hefty 14.5 times last year's earnings (EBITDA).
It allows the UK group to accelerate the 'paydown' of a near £1 billion debt it carries on its balance sheet. It also saves the group £18 million of interest payments, which means the transaction will be earnings accretive.
"Crucially, it allows us to become a pure play hospitality business and focus on what we do best - namely, giving our guests amazing pub experiences," said Marston's Justin Platt.