UK: Scottish & Newcastle sells Courage beers to Wells & Young

British brewer Scottish & Newcastle announced it has agreed to sell its traditional Courage beers business to Wells & Young's Brewing Company, Reuters reported January 17.
Under the agreement, a new business – Courage Brands Ltd – would be created, with Wells & Young's owning 83 percent and Scottish & Newcastle retaining a 17 percent stake, the company said in a statement.

No financial details were disclosed, but the Times newspaper said the deal was thought to be worth more than 10 million pounds ($19.69 million).

"These new arrangements are part of S&N's continuous strategy to find the right organisational and ownership solutions for our brand equities," Managing Director John Dunsmore said in the statement. "Importantly, there should be no negative impact on Courage stockists or drinkers," he said.

Wells and Young's will be granted a seven-year licence for the Courage portfolio, which includes Courage Best and Directors. Brewing operations will be moved from the John Smith's brewery in Tadcaster, northern England, to the Wells & Young's brewery in Bedford, southern England, over the coming months.

"This is a significant first major acquisition for Wells & Young's," Managing Director Nigel McNally said in the statement.

The deal comes after Scottish & Newcastle sold its Theakston brands in 2002 back to the founding family.