UK: Young & Co denied take over speculations
Young & Co has denied weekend press speculation that the group is soon to be sold, according to The Publican, February 14.
Media reports suggested that following recent changes at the Wandsworth brewer – which have seen the sale of its historic Ram brewery – plus the death of its long time chairman John Young the group was an ideal candidate for a bid.
However, chief executive Steve Goodyear said the reports were without foundation.
“I’ve no idea where this came from, but we have no intention of selling the business,” he said. “What came out of the article in question was that the family is still involved and remains a major shareholder. As such they are committed to the business and are supportive of our strategy of taking the company forward,” he added.
Since the closure of the Ram brewery and the subsequent brewing joint venture with Bedford-based brewer Charles Wells, speculation has been rife that the asset-rich Young’s would make a tempting addition to a larger pubco’s portfolio.
A number of companies are believed to be looking at the group, many of whose pubs have been the subject of significant investment programmes in recent months.
Hamish Champ, City & Business editor, says: “Whether you give yesterday’s Sunday Express piece on Young’s being a bid target any credence or not, the Wandsworth group does have ‘previous’ when it comes to denying stuff that later turns out to be bang on the money. On hearing early last year that it was to farm out production to a rival, I contacted the group to ask whether it was true. They said it wasn’t.
Given what was going on behind the scenes at the time I wasn’t terribly surprised when this statement turned out to be, well, false. Even though it’s professionally frustrating, I understand a company’s desire to keep this kind of stuff under wraps. But it does make one everso slightly suspicious when the next rumour mill grinds into action and out come the denials once more.
Months after its brewery site sale and the sad death of chairman John Young, the crystal ball-gazers are out in force again, this time predicting a sale. Given the relentless march of consolidation it is not a surprising conclusion to come to. My own tea leaves suggest that for now Goodyear and his team will hang on to the group’s independence. But their ultimate duty is to safeguard the interest of the company’s shareholders. If someone comes in with an offer that’s too good to refuse, surely that determination will be severely tested.”
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