Magners and Tennent’s lager maker C&C has agreed a deal to buy the UK wholesale arm of Japanese beer brand Asahi.
Irish firm C&C, which is listed on the London stock market, said it had bought the firm’s UK wholesale business for a nominal sum.
The deal includes all Asahi UK’s wholesale customer and supplier relationships and agreements, as well as the intellectual property, a leased depot and some other assets such as vehicles and stock.
The agreement will also see all supply arrangements to the Fuller, Smith & Turner on-trade estate transfer to Dublin-based C&C.
C&C will merge the Asahi wholesale business into its Matthew Clark Bibendum (MCB) operations following the deal, which is expected to complete in October.
Roger White, chief executive of C&C Group, said: “This move represents an attractive opportunity to provide a significant number of new customers with MCB market leading service and range proposition whilst simultaneously delivering immediate scale and efficiency into the group’s operations.”
Shares in C&C lifted 6% in morning trading on Friday.
Asahi owns Fullers in the UK, as well as worldwide brands including Peroni, Grolsch and Pilsner Urquell.
In a trading update released alongside news of the Asahi deal, C&C said revenues fell 3% in the first half to August 31, weighed on by distribution sales declines.
It saw branded revenues rise 2% in the half-year, boosted by hot weather and the World Cup, but said this was offset by a 4% drop in distribution sales.
“In distribution, the revenue decline was principally driven by the planned exit of some lower margin customer business, combined with the continued impact of on-going market decline in outlet numbers and certain drinks categories,” according to C&C.
It remains on track for underlying earnings of around 43 million to 44 million euros (£37 million to £38 million) for the first half.
C&C also owns brands including premium craft beer Innis and Gunn
Share