Young's pulls out of brewing

By Michelle Perrett

- Last updated on GMT

Related tags: Charles wells, Beer, Wells & young

Young's is to concentrate on pub estate
Young's is to concentrate on pub estate
Young's is to pull out of brewing after selling its 40% shareholding in Wells & Young's Brewing Company to Charles Wells for £15.1m. Wells...

Young's is to pull out of brewing after selling its 40% shareholding in Wells & Young's Brewing Company to Charles Wells for £15.1m.

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

Charles and Well's is to pay £15.1 million in cash with £5.1 million payable in February 2012, and the remaining £10 million being payable in two equal amounts in February 2013 and February 2014.

Young's said the deal will allow it to increase its focus 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.

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.

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."

Related topics: Beer, Legislation

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