UK brewer agrees takeover of Jennings Brothers

Wolverhampton & Dudley Breweries today said it had agreed a £45.8m (€67.3m) takeover of Lake District brewer and pubs group Jennings Brothers.

The Midlands brewer said the 430p per share offer was 32% higher than Jennings’ closing mid-market price of 325p per share on April 8, the final day before the two groups disclosed they were in talks.

Wolves said the business of the Cockermouth-based company would fit in well with its existing pub estate and would provide cost savings and operational benefits.

Drinkers' lobby group the Campaign for Real Ale has urged Jennings' shareholders to reject the takeover offer, amid concerns that it could spark the loss of another local brewer.

Wolves, which has bought and then closed breweries in the past, has responded by insisting it would keep Jennings’ Cockermouth brewery, which makes the latter’s flagship Cumberland Ale.

The Wolverhampton-based group said, however, that there would be some job cuts among Jennings’ 78-strong staff in Cockermouth.

A Wolves spokesman said: “We are absolutely committed to the brewery because we think it’s a strong brand and we want to develop it.

“There will be some job losses relating to overhead-type costs in the business.”

Wolves said it recognised the “strong and rich heritage of the Jennings brewery operations, its excellent reputation and the local appeal of the beer brands.”

It had “stated its intention to continue to operate the Jennings brewery and develop the brewing business regionally”, it said.

Wolves’ chief executive Ralph Findlay said: “We believe our proposals will assist in the further development of the business and provide good opportunities for its lessees, beer brands and employees.”

Jennings’ chairman John Rudgard said the deal would protect and develop its heritage within a far larger and stronger group.

“We believe W&DB will provide a good home for Jennings,” he said.