Spirit wins S&N pub auction

The merger of the two business will create a major player in the high street and suburban branded pub market, taking in a wide range of pub brands from Rat & Parrot to the Wacky Warehouse children*#*8217;s playbarn chain.

The sale, which leaves S&N free to concentrate on developing its global beer brand business, attracted strong interest, with Spirit seein of rivals including laurel Pub Company and Mitchells & Butlers, as well as private equity bidders.

A new company, Spirit Amber Bidco, has been formed by a consortium of Texas Pacific Group and Blackstone Group, also including CVC Capital Partners and Merrill Lynch Global Private Equity. At the same time, Spirit Group will move into Spirit Amber Holdings.

S&N Chief Executive Tony Froggatt said: "The successful sale of S&N Retail is a key step in the group's strategy of focusing on its brewing business." S&N has also signed a seven year agreement for the supply of its beer and cider brands to Spirit. S&N has three of the top ten brands in Europe by sales volume, including Kronenbourg and Foster's and recently acquired the Bulmers cider business.

Tony Campbell, chairman of Spirit Amber said: "We are delighted to acquire such a high quality business with great pubs and great people. I am confident that the business will continue to prosper as part of the new group, which will be the leading managed pub business in the UK."