Investors and analysts have been toasting Marston’s deal with Carlsberg. Shares in the FTSE 250 pubs and brewery group doubled in price on the day the agreement was made public at the end of last week, and have lost little of their fizz over the subsequent days. The follow-ups from the analysts that cover the stock have been overwhelmingly enthusiastic.
It’s not difficult to see why. While the partnership dims Marston’s involvement in brewing ales and beers, and sparked howls of outrage from the ale purists, it has teamed up with a well-regarded player and the terms value its existing operations at a sound multiple of earnings.
The £273 million cash payment Marston’s receives means that it can meet its target of cutting its unsustainable