Fuller, Smith & Turner has announced the sale of 37 pubs from its tenanted and managed inns division to Admiral Taverns for £18.3 million. This deal, at a premium of £1.6 million to the gross asset value, was revealed to investors on Wednesday.

The west London-based brewer and pub group stated that this disposal would strengthen its balance sheet and enable further investment in its existing pub estate and potential future deals.

Once finalised on 25 June, Fuller’s portfolio will include 154 tenanted inns and 179 managed pubs and hotels. Meanwhile, Admiral’s estate will expand to over 1,400 predominantly wet-led pubs across the UK, with approximately 300 located in the south-east of England.

Admiral Taverns has been expanding its business through acquisitions since private equity firm Proprium Capital Partners invested in it alongside C&C Group, the owner of Magners, seven years ago. This growth includes acquisitions from Marston’s, Heineken UK’s Star Pubs & Bars, and over 650 Hawthorn pubs from NewRiver REIT in 2021 for £222.3 million.

Chris Jowsey, chief executive of Admiral Taverns, commented: “Recent years have seen Admiral build a strong track record in delivering profitable growth across our estate, underpinned by continuous targeted investment to unlock new opportunities.”

This acquisition follows a strong trading period for Fuller’s, with like-for-like revenues increasing by 11.5 per cent in the 42 weeks ending 20 January. The company reported a successful Christmas and New Year period, recovering from significant sales losses the previous year due to railway workers’ industrial action.

Analysts at broker Liberum noted that Fuller’s has also benefited from the return of tourists and financial sector workers.

Fuller’s reaffirmed its commitment to owning and operating both managed and tenanted pubs as a core part of its future strategy. The company stated, “However, the company proactively manages its pub estate, continually evaluating strategic opportunities and believes that the disposal of this portfolio to Admiral allows the company to focus on the development of its retained managed and tenanted estates.”

As of late Wednesday morning, Fuller, Smith & Turner shares were down by 0.3 per cent at £7.08, although they have increased by about 32 per cent over the past year.