Pub group the Head of Steam has been sold by Emley-born businessman Tony Brookes to north-east brewer and retailer Camerons Brewery.
Camerons Brewery has added seven new outlets to its retail pub estate – including the Head of Steam pub at St George’s Square in Huddersfield – with the purchase. That takes Camerons’ estate to more than 75 sites.
The company plans to grow to an estate of 200 pubs within five years. The new outlets also include The Head of Steam sites in Newcastle and Durham along with iconic Newcastle pubs The Cluny, The Cluny 2, Tilley’s and Central in Gateshead.
Camerons director and general manager Christopher Soley said: “We are delighted with these new additions. As a board, one of our key strategic investment areas is the development of a quality, sustainable estate in both our managed and tenanted pub divisions. These new sites fit the criteria that we targeted, offering traditional cask ales, craft beers and world lagers.
“The seven outlets will form part of our managed group of pubs. There are no imminent plans to change the great offer radically at these sites and will be looking to adopt many of their principles into our current estate.
“This is the first step in developing our estate in size, quality and geography and we are looking for further sites that fit a similar model to The Head of Steam group both within our current estate and new opportunities.”
Camerons Brewery will be retaining all staff in the group, including the services of former co-owner Mr Brookes, who will work with the Camerons board on a consultancy basis to ensure the sites continue to deliver their unique offer.
Mr Brookes said: “I am really pleased that we have sold our business to Camerons Brewery. After seeing the investment in their new brand range as well as their plans to expand their pub estate I felt Camerons were in a position to take the great work we have done and develop it even further.
“Given the scale of Camerons and the relationship it has with other world brewers and suppliers I am looking forward to working with them to ensure these sites continue to be successful businesses in the future.”
The purchase of the sites has been supported by brewing partners Carlsberg UK as the two companies look to increase business together. The deal was facilitated by Newcastle advisors Watson Burton and UNW.
Hartlepool-based Camerons posted a pre-tax loss of £100,000 in the year to April 28 after impairment costs of £500,000 linked to a debt refinance and a £1.8m impairment charge relating to four sites. Turnover fell from £21.8m to £19.8m. The group reported a pre-tax profit of £1.9m in 2012.
Announcing the results this summer, Mr Soley said: “2015 will see the company celebrate 150 years in business and our plan is to see our brands dominate our north east heartland area and see our products available to suppliers and customers nationwide.”
In its annual report, the company stated: “Pubs remain a core element of our business and therefore in parallel with the disposal of non-core assets, we have invested in an improved operational pub management team and embarked upon an acquisition strategy to acquire additional freehold and leasehold sites.
“Our ambitions for growth are to achieve a combined pub estate of around 200 pubs in the next five years. The contract brewing business remains robust and we see a significant opportunity for expanding our contract volumes in the forthcoming years.
“Whilst our accounts show a reduction in turnover, this is as a result of a change to the beer production mix.”
