C&C Group pushed to go private by activist investor: C&C Group, owner of the Tennent’s, Magners and Bulmers Ireland brands, and Matthew Clark, Bibendum Wine and Walker & Wodehouse, has been targeted by activist investor Engine Capital, demanding a strategic review process that could lead to the business going private. “C&C has been a perennial underperformer and today is deeply misunderstood and undervalued by the market because of a combination of structural and self-inflicted problems,” the hedge fund said in a letter to C&C’s board. C&C has seen its share price fall 52% in the last five years as it has struggled to retain senior leadership. It has had four chief executives in under four years following the departure of Patrick McMahon after “accounting mistakes” and “failures in the group’s reporting framework” were discovered in the last three years when he was chief financial officer. Former Marston’s boss Ralph Findlay has been appointed as chief executive while a long-term successor is found. Engine said it had invested in C&C more than four years ago, and it currently owns just under 5% of its stock. C&C currently trades on a valuation of around seven times its normalised operating profit, which Engine said was “entirely disconnected from the strategic value of its assets and reflects a steep discount to transaction multiples in the private markets”, which have averaged around 13 times operating profit. Engine pointed to overall management problems of “succession missteps, strategic mistakes, execution blunders, and an inability to return to its higher historical earnings profile” as why its valuation was so low. The structure of the business was also pulling down its value, Engine argued, blaming C&C’s small size and the “complexity of its portfolio”, with disparate assets with different financial characteristics across different geographies. “As a result, the company has no pure play peers of similar size or geographic composition, making it more difficult for public market investors to evaluate, diligence, and value it,” Engine added. Engine estimated that if C&C was to go private, it would sell for at least a 58 premium to its current share price. “We are confident that buyers would pay a price that is far superior to its stand-alone value, especially considering the time value of money and execution risk,” concluded the activist investor. C&C, whose share price rose 1.8% on the news, responded: “The board welcomes feedback from all shareholders and has a clear focus on creating shareholder value. As set out in the recent FY24 year-end results update, the underlying performance of the business has been in line with expectations, and progress has been made in returning capital to shareholders. Operationally, the key priority is to deliver the substantial actions currently being progressed at pace throughout the business, driving forward both brand and distribution revenue, improving margin, while returning up to €150m by the end of FY27.”

Premium Club members to receive next Multi-Site Database on Friday featuring 3,161 operators: Premium Club members are to receive the next Multi-Site Database on Friday (28 June) at midday. The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,161 multi-site operators and is now searchable in seven main segments. The database features 927 (29%) operators from the casual dining sector, 771 (24%) pub and bar operators, 524 (17%) cafe bakery operators, 433 (14%) quick service restaurant operators, 254 (8%) hotel operators, 198 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month and this edition includes 40 new companies. Premium Club members also receive access to five additional databases: the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Club members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.