A US private equity firm has pulled out of attempts to acquire pubs and restaurants group Marston’s a week on from their initial £690m proposal being rejected for undervaluing the business.
The board of Marston’s said today they noted the announcement by Platinum Equity Advisors that it does not intend to make a firm offer. The company added that it was well-placed to benefit from the opportunities in a post-coronavirus trading environment.
With its business hit hard by the shutdown of the hospitality sector for much of the last year, Marston’s share price had been languishing close to a 20-year low before the takeover offer. It has gained roughly a third in value since the proposal was announced last week, but dropped over 10% this morning when Platinum Equity Advisors withdrew their interest.
The company operates around 1,350 pubs and warned towards the end of last year that over 2,000 jobs were at risk due to the pandemic-related disruption in the sector. Results for the 13 weeks to 2 January show Marston’s pubs generated sales of just £54m. That compared to £1.17bn during the whole of 2019.
However, Marston’s reiterated today that it has the financial headroom to weather the current trading restrictions with its new joint venture with Carlsberg helping strengthen its balance sheet.
