LONDON (ShareCast) - (Sharecast News) - Marston's has exchanged contracts with struggling Welsh pub chain Brains to operate its portfolio of 156 pubs on a combination of leased and management contract arrangements.
Due to the impact of the Covid-19 pandemic and in particular, recent tighter restrictions on Wales, Brains has been "under significant financial pressure", Martston's said.

In order to address the company's immediate funding requirements, Marston's has entered into collaborative discussions with the business with a view to preserving the freehold capital value for its stakeholders, "protecting Brains strong, heritage brand name and, importantly, safeguarding the jobs of the pub teams within the business".

Marston's said the agreement is consistent with its long-term strategy as a focused pub operator, post the recent disposal of its brewing assets, and strengthens its representation in South and West Wales.

Marston's - which currently has 106 pubs in Wales - will operate 141 pubs under the Brains brand and a further 15 leasehold sites under management contract.

Brains' 1,300 staff will transfer across to Marston's and an initial incremental central overhead of up to £2m will be required to operate the additional pubs.

The transaction is expected to be earnings accretive in the first year following completion.

Marston's chief executive Ralph Findlay said: "We have worked closely with the management team and the SA Brain family to collaborate on a mutually beneficial transaction that safeguards the future of Wales' leading pub company, enabling these great pubs to have a stable and successful future, and securing 1,300 hospitality jobs in Wales.

"These high quality pubs are a great fit with our existing estate and will benefit from Marston's scale and operational expertise to further unlock their excellent long-term potential."

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