Marston's tipped as obvious Cains buyer
Industry experts are tipping Marston's as an obvious buyer for Liverpool brewer Cains, which went into administration yesterday.
Marston's has been pursuing a regional cask ale strategy that is in marked contrast to the centralised approach of rival super-regional Greene King. The Marston's strategy has been in buying a series of regional brewers such as Jennings, Ringwood and Refresh and opting to maintain brewing facilities.
It takes the view that modern, well-invested breweries can be staffed non-intensively and the cask ale market is favouring ales with local provenance. Marston's has signaled in the past that its regionalised strategy has a number of geographic gaps.
Greene King, by contrast, has prefered to centralise production and focus its marketing muscle on three key cask ale brands - IPA, Speckled Hen and Abbot Ale.
One analyst said: "Marston's looks the most likely buyer of the brewery itself. The addition of Cains brands would give it a strong position in Liverpool. Cains also owns 26 freehold pubs, which may be of interest. The 44 or so pubs that belong to Punch Taverns and Admiral Taverns are likely to be of far less interest."
Marston's declined to comment on industry speculation.
Marston's looks the most likely buyer of the brewery itself. The addition of Cains brands would give it a strong position in Liverpool.City Analyst
David Chubb, Ian Green and Craig Livesey of PricewaterhouseCoopers LLP have now been appointed as joint administrators and have vowed to continue to operate the brewery and pubs while a buyer is sought.
Cains undertook a £37m reverse takeover of Honeycombe Leisure in May 2007, which saw Cains acquire 92 pubs, and a listing on the Alternative Investment Market.
The Bank of Scotland provided £40m, of which £30m was a loan facility, £5m in working capital and £5m to fund refurbishment of the pubs. Cost of servicing the interest on debt amounted to £1.2m in interest for the most recent six month period, compared with just £66,000 a year ago.
"It is currently our intention to continue to trade both the brewery and pub chain businesses and we will seek to achieve going concern sales over the coming weeks and months," said Chubb.
"We have already received some early indications of interest and we would also invite any parties interested in acquiring either the brewery or pub chain businesses to contact us as soon as possible."
