Legendary beer maker Marston's has sold its brewing division to focus on its pub business.
The Wolverhampton-based company has agreed to sell its stake in a joint venture with the UK branch of Danish giant Carlsberg.
The venture, called Carlsberg Marston's Brewing Company, produces brands such as Hobgoblin and Pedigree. Marston's said it would sell a 40 percent stake in the joint venture to Carlsberg and receive 206 million pounds.
It comes four years after the two brewers formed a UK partnership in a deal that valued the business at £780m, as Marston's looks to focus more on its pub operations.
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Marston's stores in Birmingham include Lost & Found in Bennetts Hill, The Bulls Head in Kings Norton and Farmer John's in Streatley, as well as the Pitcher & Piano chain which operates across the UK.
Justin Pratt, who became chief executive of Marston's earlier this year, said: “This transaction further strengthens our balance sheet and significantly reduces debt by more than £200 million.”
“Importantly, it will enable us to focus purely on our hospitality business and concentrate on what we do best – providing our customers with a great pub experience.”
Separately, Carlberg has agreed to buy Robinsons squash maker Britvic for £3.3 billion. The British soft drinks company, which also makes J2O and Tango, said it would recommend the latest deal to shareholders.
Taking into account debt, that value would be £4.1 billion, but the company previously rejected a £3.1 billion offer.
Carlsberg said it plans to create a single integrated drinks business called Carlsberg Britvic once the two transactions are completed.