Young’s sells 40% stake in Wells & Young’s Brewing Company

10th August 2011, 9:59am

Young’s has revealed that it has sold its 40% shareholding in Wells & Young’s Brewing Company Limited to Charles Wells Ltd.

Wells & Young's was formed in 2006 following the merger of the Company's brewing operations with those of Charles Wells, with Charles Wells holding a majority 60% stake.

The payment for the Company's shareholding is £15.1 million in cash. £5.1 million is payable in February 2012, with the remaining £10 million being payable in two equal amounts in February 2013 and February 2014.

Young's can now concentrate on its portfolio of managed and tenanted pubs in London and the South of England while at the same time allowing Wells & Young's to continue to develop new and existing brands. Young's will use the consideration from the transaction to invest in the further development of the Young's and Geronimo pub estates.

Meanwhile the existing, exclusive three-year rolling supply agreement with Wells & Young's for the supply of drink to the Company's pub estate has been amended. There are now two agreements: one for beers and ciders, the other for wines and spirits. Both are two-year rolling agreements but Young's cannot give notice of termination within first two years.

Commenting on the announcement, Young's chief executive, Stephen Goodyear said: "This transaction is mutually beneficial for both Young's and Charles Wells. Young's is focused on investing in its premium pub estate whilst Wells & Young's is looking to invest in developing new and existing beer brands. 

"We are pleased to retain good supply agreements and our customers will therefore continue to enjoy their customary array of quality cask ales and lagers throughout our estate."

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