Marston’s sees private equity suitor walk away from potential takeover deal

Pub group Marston’s has said it is well placed to benefit from post-Covid opportunities, as it emerged a US suitor is walking away from a potential takeover.

US private equity firm Platinum Equity Advisors had made proposals for the pub operator in December. Most recently, earlier this month Marston’s said it had received a 105p per share proposal. That valued the business at around £690 million and was rejected.

Marston’s said the latest proposal represented a 19% discount to the firm’s share price at the start of 2020.

Platinum today said that, after careful consideration, “it does not intend to submit a revised proposal and it will not make a firm offer for Marston's”.

Marston’s, which is led by Ralph Findlay, has faced severe disruption to trade after having to shut sites for Covid-19 lockdowns.

Marston's today said: “The board continues to believe that Marston’s is well placed to benefit from the opportunities in a post Covid 19 trading environment, following the completion of the SA Brain transaction and harnessing factors such as a reduction in on-trade industry supply, and increased home-working that will benefit pubs in suburban locations.”