Legal & General Capital, through LGV Capital, has agreed terms to sell its majority interest in The Liberation Group to Caledonia Investments in a transaction valuing the company at GBP118 million.
Liberation is held principally on behalf of the with-profits fund for customers.
Completion is expected over the course of the summer, and Caledonia is backing the existing management team.
Legal & General Capital focuses its investments in four key sectors: UK housing, UK urban regeneration, clean energy and SME finance. These reflect its aim to invest for the long term in economically and socially useful assets, securing competitive returns for Legal & General, its partners and customers.
The good stewardship of assets includes the ability to nurture and develop a business, as well as disposal at the appropriate time. Recent examples include the sale of Snow + Rock in 2015 and ABI Group in 2016.
Paul Stanworth, managing director of Legal & General Capital, says: “Liberation has been a high quality investment for Legal & General, shareholders and customers. An excellent management team has delivered growth, enhanced local communities in the Channel Islands and the West Country through job creation and investment.”
Liberation’s CEO Mark Crowther says: “I would like to thank Legal & General for their advice and support during the last eight years. We are delighted to have a new partner to provide funds and insight to continue the growth of Liberation where expansion will be focused on the buy-and-build strategy in the UK whilst simultaneously growing and developing our business in the Channel Islands.”
Liberation, founded in 2008 through a management buy-in led by Mark Crowther with equity provided by LGV Capital, owns and operates a fully integrated pub and drinks business located in the Channel Islands and the West Country in the UK. Its business comprises 94 high quality managed and tenanted pubs, two award-winning breweries and three wholesale businesses. The breweries are located in Jersey and Bristol.
Liberation, with support from Legal & General, has grown strongly since 2008. The pub estate has increased from 65 to 94 outlets, and management has launched the Liberation Ale brand in the Channel Islands, where it is the market- leading brewer, wholesaler and pub operator.
In December 2014, Liberation acquired the Butcombe Brewery and pubs business located near Bristol as a platform for expansion in the UK. Butcombe owns 20 pubs in the West Country in village and suburban locations. Butcombe Bitter is one of the leading cask ale brands in the West Country, available in supermarkets and on draught in the on-trade.