Young & Co’s Brewery PLC (LON:YNGA) has agreed to sell all but seven outlets of Ram Pub Company, its tenanted estate, for £53mln.
After a strategic review, Young's said it had decided to withdraw from the tenanted model and focus solely on individual and predominantly freehold managed pubs and hotels.
As a result, Young’s has agreed to sell 56 of its tenanted 63 pubs to Punch Pubs for £53mln in cash.
The pubs generated underlying profits [EBITDA] of £4.7mln for the year ended 31 March 2019.
Young’s added it will use the proceeds to acquire predominantly freehold managed pubs that it will incorporate into its managed estate.
Patrick Dardis, chief executive, said: “Young’s sole focus will now be on operating well-invested and premium managed pubs and hotels.
“This disposal will provide us with additional firepower to upgrade our existing pubs and capitalise on attractive acquisition opportunities that may come to the market.”
Dardis added the group invested £17mln during lockdown on refurbishment and the purchase of two new pubs
“We are delighted to be welcoming back our customers and are already seeing encouraging trading, despite some restrictions remaining.
“The board is confident Young’s will emerge from the pandemic in a stronger position.”