http://www.thepublican.com/cgi-bin/item.cgi?id=19057&d=11


Fuller's agrees £91m deal for George Gale
Published 8-Nov-2005

London brewer Fuller's has agreed a deal to acquire rival family brewer
George Gale.

The move values Hampshire-based Gales at £91.8m in total, with Fuller's
paying £82.7m for the outstanding shares.

A question mark was immediately put over the future of the Gales' brewery in
Horndean, with Fuller's planning to 'review' all operations.

With a strong portfolio of its own beers, including London Pride and recent
launch Discovery, Fuller's main interest is undoubtedly Gales' 111 pubs.
However, the company indicated it would keep at least some of Gales' beers,
with premium brand HSB the likely front-runner.

Michael Turner, Fuller's chief executive, said the Gales estate "can be
brought into the Fuller's estate with little adaptation, and a number of
well respected brands which will enhance our ale portfolio."

He added: "The board has identified Gales as a core acquisition target for
Fuller's as it believes that a combination of these two highly regarded,
geographically complementary regional operators will deliver improved
shareholder value."

Charles Brims, chairman of Gales said: "This is an attractive proposal for
Gales shareholders. Although it is always sad when a long-established family
business decides to sell, I am confident that this decision is right for
Gales shareholders and right for the business."

The move continues the wave of consolidation that has swept the regional
brewing sector this year. Other high profile deals over recent months have
seen the acquisition of Lake District brewer Jennings by Wolverhampton &
Dudley Breweries, while both Belhaven in Scotland and Essex-based Ridley's
have been snapped up by Greene King.

Fuller's has been in the market for a major expansion of its estate for
several years, and first approached Gales three months ago. Mr Turner told
news agency Reuters: "This isn't the end of our ambitions."

With Gales operating a complex share structure to retain family control,
Fuller's is offering 4421p for each Gales Ordinary Share, 1160p for each
Gales 'A' Share and 1200p for each Gales Preference Share.

With Gales' board backing the takeover, Fuller's already has support
equivalent to 80.6 per cent of the voting rights, making the shareholder
meeting needed to approve the deal little more than a formality.

Regards
John Hopkins
http://groups.yahoo.com/group/advertising-n-spotlighting