Greene King snaps up Ridley's in £45.6m deal
Greene King has bought Essex brewer TD Ridley in a £45.6m deal, ending more than 160 years of family ownership.
The deal has been rumoured for some weeks, and continues the current wave of consolidation taking place across the pub sector.
The takeover will see Ridley's historic brewery at Hartford End, near Chelmsford, closed by the autumn. Production of beers will move to Greene King's brewery in Bury St Edmunds.
Ridley's well-respected cask beer range includes Old Bob and Tolly Original. Greene King did not specify which brands will continue to be brewed, but said "a number" will transfer. Ridley's standard house bitter IPA, which shares its name with Greene King's flagship bitter, is likely to top the list of any brands to be culled.
Ridley's also brews under contract at Hartford End, producing XX Mild for Greene King itself. Sheffield brewer Kelham Island has also contracted its CAMRA award winning Pale Rider bitter to Ridley's to meet demand.
The purchase price includes £8.8m in debt. Ridley's 73 freehold tenanted and leased pubs will be added to the 2,000-plus Greene King estate.
The deal is expected to enhance Greene King's earnings per share in the first full year of ownership, following the achievement of savings of around £3.5m a year.
Rooney Anand, chief executive of Greene King, said: "Ridley's has a high quality pub estate, some popular ale brands and a sound local free trade business. The business is ideally located in a strongly developing part of the country which is close to the centre of our operations.
"We are delighted with the purchase and believe Ridley's will benefit from Greene King's scale and investment and our expertise in managing an integrated tenanted and brewing business.'
Nicholas Ridley, chairman of Ridley's, added: "After many years of running the company as a local independent business, and following long deliberation by the board, we now believe that Ridley's needs to become part of a larger group.
"We view Greene King as the best owner to develop our business for the future."
Mr Ridley is the great great grandson of Thomas Dixon Ridley, who founded the business in the 1840s. The family owns 31 per cent of shares, and so stands to make around £11m from the sale.
