Cains brothers complete Honeycombe takeover
Entrepreneurial brothers Sudarghara and Ajmail Dusanj have agreed a reverse take over of AIM-listed pub operator Honeycombe Leisure PLC to create a new business with 109 outlets and an annual turnover of £65.5 million.
A new group - formed from Honeycombe and the Cains Brewery owned by the Dusanj brothers - will be renamed Cains Beer Company PLC to capitalise on the strength of the premium brand 'Cains'.
The takeover has been funded by Bank of Scotland Corporate in Liverpool in a deal worth £37 million.
The new business will be listed on the AIM market and 57.65 per cent owned by Sudarghara and Ajmail Dusanj, who acquired Cains Brewery in 2002. The company headquarters will be at Cains' brewery in Stanhope Street, Liverpool
The deal brings together Honeycombe Leisure's estate of 100 pubs, concentrated mainly in the North West, with the nine already operated by Cains.
Sudarghara and Ajmail Dusanj, who take up the respective positions of chief executive and chief operating officer of the new business, believe that the deal represents a major opportunity for the quality brand that Cains has built to progress to a new level of distribution and awareness via the strong retail base created by Honeycombe.
Sudarghara Dusanj said: "The new business will have a significant brewing, distribution and branded beer portfolio to add to the existing company's pub chain. This is a fully integrated business model which has been adopted by many highly successful companies and offers a direct route to market.
"There will be significant synergies by combining the two organisations. In particular, Cains will be able to market its own beer into an additional 100-strong pub estate through our existing in-house distribution facility, increasing the foot print of the Cains brand and customer base.
"Our vision for the new group is to become 'Britain's Favourite Beer Company'. This latest deal puts Cains into a new league and will provide an excellent platform for the future growth of the business."
Alastair Donald, Area Director for Bank of Scotland in Liverpool - which has provided funding for the enlarged group - said: "Bank of Scotland is delighted to be supporting a highly reputable and well-known local business with national ambitions to make its mark with the UK brewery sector.
"Throughout the course of our discussions with Cains, we've been consistently impressed by the strong management demonstrated by the Dusanj brothers. Their entrepreneurial aspirations for the business closely reflect Bank of Scotland's own commitment to funding ambitious and fast-growing companies throughout the UK.
"By bringing together Honeycombe's existing pub estate and Cains' brewing capabilities, the company is now in an excellent position to realise those ambitions by extending the reach of the Cains brand to a wider consumer audience."
