Pub and brewery firm The Liberation Group has expanded by completing a combination deal with Cirrus Inns.
The transaction will see Heinken-owned Cirrus’ 22 pubs across the South East and South West - including sites in Dorset, Gloucestershire and Somerset - join the Liberation portfolio, which now covers an area spanning the Channel Islands to London.
Liberation, the Jersey-based parent company of West Country brewery and pub brand Butcombe, previously told BusinessLive it was planning to buy up more venues across the region this year, as part of an “ambitious investment programme” following the Covid-19 pandemic.
Following its deal with Cirrus, Liberation now oversees an estate of around 137 pubs, made up of 79 managed and 58 tenanted sites, with accommodation of more than 400 rooms.
Group chief executive Jonathan Lawson will lead the combined group with the Cirrus founder Alex Langlands Pearse joining the board as a non-executive director.
Liberation said it would focus on delivering a “successful Christmas” before beginning to integrate Cirrus ino the group in the New Year.
The company, which is backed by investment firm Caledonia, said it had agreed new loans with existing lenders, HSBC, Santander and NatWest, to support the deal.
Mr Lawson said: “Liberation Group, Cirrus and our respective majority shareholders, share a very similar view of pubs, and the unique role they play in our communities. ‘Langy’ and his team have built a superb business which we are incredibly proud to welcome into Liberation Group.”
Mr Pearse added: “I have watched the development of Liberation Group over the last few years and along with our major shareholder, the Heineken family, feel confident in the ability of its team to take the business forward. We are reassured that in Caledonia, we have found investors with the similar level of family values, ambition, and long-term approach to build something unique and I look forward to joining the board."
In September, Liberation warned its energy bills were set to double even with support previously announced by former Prime Minister Liz Truss’ government, adding it was “not immune” to inflation pressures currently facing the hospitality sector.
Mr Lawson said despite “obvious headwinds” for the business and its customers, the group was on course to deliver a “strong year’s performance”.
“We have obviously seen significant pressure on our cost base, but we have worked hard with our suppliers to find solutions wherever possible and have balanced pricing decisions with initiatives to deliver value to our customers," he said.
“As a result, we have seen a stable gross margin performance in our pubs and drinks business, with both showing progress vs 2019."
The group said its managed UK like-for-like sales growth during the 10 months to the end of was up almost 30% on the same period in 2019, while its UK brewery OBV volumes also grew by 12%.
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