Wolverhampton& Dudley Breweries PLC
14 June 2004
14 June 2004
For immediate release
Not for release, publication or distribution in or into the United States of
America, Australia, Canada or Japan.
The WOLVERHAMPTON & DUDLEY BREWERIES, plc
Acquisition of Wizard Inns Limited
The Board of W&DB announces that it has agreed to acquire Wizard Inns Limited ('
Wizard') for a net consideration, including assumed debt, of £89.9 million (1).
The consideration will be paid in cash and will be satisfied from existing bank
Wizard has an estate of 63 high quality managed outlets, located mainly in the
south of England. The estate, around half of which is freehold, comprises a mix
of well-situated high turnover community pubs and unbranded bars. The Wizard
estate is a good fit with W&DB's existing operating formats, offering
opportunities for both conversion and replication across the business.
In the year ended 28 December 2003 Wizard generated pub EBITDA of £12.1 million,
pub EBIT of £8.9 million and operating profit after central overheads of £5.9
million, with turnover of £43.8 million. As at 28 December 2003, Wizard had a
net asset value of £63.6 million (2).
It is expected that the acquisition will be earnings enhancing before goodwill
amortisation and will cover its cost of capital in the first full year following
the acquisition (3). Full year overhead and purchasing synergies in excess of
£2.5 million are expected in the year ending September 2005.
Commenting, Ralph Findlay, Chief Executive of W&DB, said; 'The acquisition is
consistent with our strategy of expanding our estate organically and
geographically, where suitable opportunities occur that meet our returns
criteria. Wizard has a good track record, in part because of its strong service
culture, the essence of which we will seek to retain and develop across
comparable Pathfinder Pubs'.
W&DB 01902 711 811
Rothschild 020 7280 5000
Hudson Sandler Ltd. 020 7796 4133
N M Rothschild & Sons Limited is acting for W&DB and no one else in connection
with the acquisition of Wizard and will not be responsible to anyone other than
W&DB for providing the protections afforded to clients of N M Rothschild & Sons
Limited or for providing advice in connection with the acquisition of Wizard.
(1) Net of cash balances of £6.8 million
(2) On a cash and debt-free basis
(3) The foregoing statement should not be interpreted to mean that W&DB's future
earnings per share will necessarily be greater than its historic published
earnings per share
An analyst conference call will be held at 9:00am this morning. Please contact
Lara Meinertzhagen at Hudson Sandler for details - Tel: 020 7796 4133.
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