REG - Close Bros Grp PLC - Agreement to sell Close Brewery Rentals Limited

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RNS Number : 0184R  Close Brothers Group PLC  15 July 2025

 

 

 Close Brothers announces agreement to sell Close Brewery Rentals Limited
 15 July 2025

Close Brothers Group plc ("the group" or "Close Brothers") today announces
that it has reached an agreement to sell Close Brewery Rentals Limited
("CBRL") to MML Keystone, a fund managed by MML Capital. The transaction is
expected to complete in the 2025 calendar year.

The sale aligns with the group's strategic priorities to simplify our
portfolio, improve operational efficiency and drive sustainable growth.

Close Brothers established CBRL in 2007 and has successfully grown it into one
of the main providers of rental and maintenance services for brewery
containers such as kegs and casks in the United Kingdom.

The agreed sale is expected to generate a modest gain on disposal and capital
benefit. Following completion, the disposal is not expected to have a material
ongoing impact on the group's Adjusted Operating Profit.

Whilst the group will no longer offer brewery container rental solutions,
Close Brothers will remain a key specialist lender in the beverage finance
market and will continue to provide finance solutions for brewery and
distillery equipment. The group sees attractive growth opportunities in this
sector and will continue to support it through Close Brothers Beverage
Finance, a lending business with a loan book of c.£35 million at 31 January
2025.

Mike Morgan, Group Chief Executive, said: "Over the past 18 years, we have
successfully grown the brewery rentals business to now serve over 500
breweries in the UK & Ireland. We believe that this is the right time to
sell CBRL given the capital needed to maximise its growth potential and our
focus on simplifying our business portfolio. We thank the CBRL team for their
hard work and dedication and wish them well in this exciting new chapter.
Whilst we are selling the brewery rentals business, we will continue to offer
funding solutions to the UK beverage finance market, where we see attractive
growth opportunities."

Andrew Honan, Co-Managing Partner, MML Keystone: "Asset pooling is a core area
of focus for MML Keystone. The combination of real societal benefit from the
efficient use of packaging assets and the ability to deliver economic benefits
to clients makes this type of business very attractive to us. We would like to
welcome the CBRL business and the team to the MML portfolio and look forward
to working together to continue to build on the great progress the team has
made under Close Brothers' ownership, to be rebranded as ekeg following
completion."

 

 

About Close Brothers

Close Brothers is a leading UK merchant banking group providing lending,
deposit taking and securities trading. We employ approximately 3,000 people,
principally in the United Kingdom and Ireland. Close Brothers Group plc is
listed on the London Stock Exchange and is a constituent of the FTSE 250.

About Close Brewery Rentals Limited

Close Brewery Rentals Limited ("CBRL") is a subsidiary of Close Brothers
Limited. CBRL operates three sites in the UK and manages a fleet of over one
million kegs and casks, including long-term rental containers, ekegs and
ecasks. In addition to offering rentals, CBRL provides container repair and
maintenance servicing to the UK and the Republic of Ireland brewing industry.

About MML Capital

MML Capital is an international mid-market private equity firm with offices in
London, Paris, Dublin, and New York, investing in innovative and fast-growing
businesses that are well-suited for the circular economy. MML has a track
record of investing in the UK for over 35 years and has successfully supported
businesses in growing both domestically and internationally. Supporting the
management teams and designing investments to fit people perfectly, their
unique businesses and personal aspirations is a key strategic angle for MML
Capital.

Enquiries

Camila
Sugimura                                 Close
Brothers Group plc
020 3857 6577

Jonathan
Cook
H/Advisors Maitland
                                    0773
077 7865

Cautionary Statement

Certain statements included within this announcement may constitute
"forward-looking statements" in respect of the group's operations,
performance, prospects and/or financial condition. Forward-looking statements
are sometimes, but not always, identified by their use of a date in the future
or such words as "anticipates", "aims", "due", "could", "may", "will",
"should", "expects", "believes", "intends", "plans", "potential", "targets",
"goal" or "estimates". By their nature, forward-looking statements involve a
number of risks, uncertainties and assumptions and actual results or events
may differ materially from those expressed or implied by those statements.
Accordingly, no assurance can be given that any particular expectation will be
met and reliance should not be placed on any forward-looking statement.
Additionally, forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. Except as may be required by law or regulation, no
responsibility or obligation is accepted to update or revise any
forward-looking statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a profit
forecast. This announcement does not constitute or form part of any offer or
invitation to sell, or any solicitation of any offer to subscribe for or
purchase any shares or other securities in the company or any of its group
members, nor does it constitute a recommendation regarding the shares or other
securities of the company or any of its group members. Past performance cannot
be relied upon as a guide to future performance and persons needing advice
should consult an independent financial adviser or other professional.
Statements in this announcement reflect the knowledge and information
available at the time of its preparation. Liability arising from anything in
this announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.

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