Marston's to sell 40% stake in brewing joint venture to Carlsberg

Marston's, a British pub and hotel operator, announced Monday a binding agreement to sell the whole of its 40% interest in brewing joint venture, Carlsberg Marston's Limited or CMBC, to a subsidiary of Carlsberg for £206 million ($263 million) in cash.

With the sale of its remaining non-core brewing assets, the company now will be a pure play hospitality business entirely focused on pubs.

The Board of Marston's has unanimously approved the deal, which is expected to be completed before the end of September 2024.

Marston's plans to use the net proceeds to de-leverage, including paying down the private placement and banking facilities. Following this, Marston's expects the Marston's Group's overall interest expense to reduce by around £18 million annually versus the Board's current expectations.

It is agreed that CMBC will continue to supply Marston's through the long-term brand distribution agreement that was entered into upon formation of CMBC in 2020.