JT Davies Investments (JT) is to buy Thames Valley pub company Brakspear & Sons in a £108m deal that will see the family-run business taken private.

The price represents a multiple of 19.8 x Brakspear’s 2005 earnings before interest, depreciation and amortisation.

JT is a privately-owned company with 51 pubs in London and the Home Counties, as well as a wine distribution business called Mayor Sworder.

It has been a shareholder in the company since 1999 and held a 30% stake in the Henley-based business prior to the deal.

Brakspear’s directors said the sale price was “extremely competitive” and made sense as the low volume of trading meant its market capitalisation and share price didn’t necessarily reflect the true value of the company.

Brakspear closed its brewery in 2002 and currently has 104 tenanted and leased pubs. 

In the offer document Brakspear’s directors said although “the future prospects of the company are satisfactory, the significant value creation experienced over recent years as a result of the realisation of surplus assets is unlikely to be replicated in the future.”

In the year ended 31 December 2005 annual turnover was £11.8m (2004: £12m) and pre-tax profit £6.1m (£4.9m).

In 2003 Michael Davies, chairman and managing director of JT, was appointed to the board of Brakspear as a non-executive director.

Pub operator Brakspear ups profits and adds bedrooms >>

Henley brewer shows robust performance >>

By Chris Druce

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