S&N allowed to keep Beer Seller
Scottish & Newcastle (S&N) has put the brakes on plans to sell the Beer Seller after the competition authorities waved through the brewing giant's acquisition of the Bulmers-owned wholesale business.
When S&N launched its £278m offer for Bulmers in April, it pledged to sell the wholesale business if required to do so by the UK or EC regulators. With the prize of adding Bulmers brands including Strongbow, Woodpecker and Scrumpy Jack to the ScotCo stable at stake, S&N did not want the deal to founder on concerns that it was also further boosting its distribution strength.
At the time, the Beer Seller management team, led by Bulmers distribution director Jean Francois Jamet, was in talks with the struggling cidermaker over a management buy-out. S&N had been expected to restart talks with the Beer Seller team once the Bulmers deal was finalised at the start of July. However, with no conditions placed on S&N with regards to the Beer Seller, it now also has the option of adding the business to the ScotCo distribution operation.
An S&N spokesman said: "There were no conditions attached to the Bulmers acquisition with regard to the Beer Seller. The situation currently is that Beer Seller remains part of Bulmers, which in turn is now wholly owned by Scottish Courage. It's business as usual.
"We're still in the process of looking at the whole Bulmers operation.
"We will consider a range of commercial options for the future of the Beer Seller business, and we anticipate its management will play a full part in those discussions."
Bulmers acquired the Beer Seller business three years ago for £32m, and described it earlier this year as "a good profit contributor".
A City financier close to the situation confirmed that no steps had been taken to sell the business.
Related articles:
Scottish & Newcastle buys £278m Bulmers (29 April 2003)
