Fuller, Smith & Turner has agreed to sell 37 pubs from its tenanted and managed inns division to Admiral Taverns for £18.3 million. This sale, announced on Wednesday, includes a premium of £1.6 million over the pubs’ gross asset value. The deal is expected to be finalized on June 25, 2023.

Fuller’s, a West London brewer and pub group, stated that the disposal of these assets will bolster its balance sheet and support future investments in its pub estate. Following the sale, Fuller’s will operate 154 tenanted inns and 179 managed pubs and hotels. Admiral Taverns, based in Chester, will expand its estate to over 1,400 pubs across the UK, including about 300 in the southeast of England.

Admiral’s Chief Executive Chris Jowsey highlighted the company’s strategic growth through targeted investment, noting that the acquisition strengthens their portfolio in the south-east. The purchase includes two pubs in Oxfordshire: The Barley Mow in Upper Heyford, near Bicester, and The Queen’s Head in Wallingford.

Admiral Taverns has grown significantly through acquisitions, including buying sites from Marston’s and Heineken UK’s Star Pubs & Bars, and acquiring 650 Hawthorn pubs from NewRiver REIT in 2021 for £222.3 million. Admiral has invested £39 million in refurbishments and sustainability upgrades across its portfolio in the past year, with support from investor Proprium Capital Partners.

Fuller’s recent strong trading period saw a like-for-like revenue increase of 11.5% in the 42 weeks ending January 20, 2023, buoyed by the return of tourists and financial sector workers. Shares of Fuller, Smith & Turner fell slightly by 0.3% to £7.08 on Wednesday morning but have increased by approximately 32% over the past year.