Marston's in £25m swoop for Thwaites' brewing business

The move includes Thwaites' best-selling Wainwright and Lancaster Bomber ales. Marston's has been brewing Thwaites' beers since early last year, after the Lancashire firm announced it was shutting down its main brewery in Blackburn.

Last summer Thwaites announced plans for a new brewery in the Ribble Valley, but today Marston's said it had bought the main brewing arm and struck a long term exclusive deal to supply all beer, wine, spririts and mineral waters to Thwaites' pub estate.

The Daniel Thwaites business, which had been brewing since 1807, will continue simply as a pub and hotels operation with a 300-strong estate.

Marston's secures both Thwaites' beers and the firm's 150-strong team of regional sales, marketing and distribution.

Marston's said that business "has shown good growth in recent years, including the acquisition of Hydes Brewery's free trade business in 2012 which increased Thwaites' business in Manchester".

Thwaites' two principal beer brands are Wainwright, one of the most popular golden cask ales in the UK and Lancaster Bomber, a premium ale. Both brands have won numerous awards in recent years and Marston's sees them as 'highly complementary' to its own portfolio of ales such as Pedigree, Banks's and Hobgoblin

Richard Westwood, managing director of the Marston's Beer Company, said: "This takes us to another scale in the beer business."

He said it would also mean more recruitment at Wolverhampton, where Marston's already employs more than 1,000 of its 13,000-strong workforce. Redevelopment work is already under way at the firm's headquarters in Chapel Ash, while office staff will be working from Coniston House, over the road, until they move back into the rebuilt Marston's House early next year.

And it would also mean secure jobs for the eight to 10 staff taken on to handle the Thwaites contract work last year.

Mr Westwood said: "This is an exciting time for us, and this agreement signifies our aspiration and ambition to grow our business, on top of our spending £7 million on a new office block and £7.5m on a new bottling line at Burton last year."

Ralph Findlay, chief executive officer of Marston's, added: "I am delighted to welcome our new colleagues to Marston's. We are acquiring a very high quality business with good people and brands, and with growth potential. The acquisition is consistent with our beer business strategy to focus on local provenance and premium brands, and provides opportunity to capitalise on the developing free trade market and increasing consumer interest in the beer category."

Marston's currently runs five breweries and has around 1,700 pubs.

The latest deal is due to be completed on April 17.

Last year, the Thwaites brewery business achieved earnings of around £7 million before overheads of £2 million.

Marston's says it expects the takeover to boost its own earnings in the first full year of ownership. In the current year it will boost pre-tax profits by around £1.5 million.

Thwaites has retained ownership of craft beer brands and other cask ale brands, including its seasonal ale range, which it will continue to brew and sell in its' own properties.

Daniel Thwaites' chief executive Richard Bailey said: "This is a very exciting development which allows us to focus on our pubs, inns and hotels, whilst retaining a small brewery to continue to supply our own properties with our fantastic beers and opening up a wider drinks range to our customers through a long term supply deal with Marston's.

"We are delighted that our beer business will find a new home in a company that is as passionate about the quality of beer that we have always been and will provide ongoing employment for the vast majority of our employees affected.

"It is our intention to redeploy the proceeds into both our existing, and new properties and the sale of our third party beer business allows us to move forward with our strategy to provide superb hospitality in outstanding properties in great locations."