Carlsberg UK and Marston’s have merged to form a new business, Carlsberg Marston’s Brewing Company, which they say creates “a best in class, brand-led UK brewer of scale”.

The Danish business, through the partnership, will own 60% of the new group while Marston’s will hold 40% and also receive a cash payment up to the value of £273m.

The deal values the Marston’s Brewing Business at up to £580 million (13.0x adj. 2019 EBITDA) and the Carlsberg UK Brewing Business at £200 million.

Through the creation of the Carlsberg Marston’s Brewing Company, it will offer the former’s array of lagers in addition Marston’s cask ales produced by outfits including Hobgoblin.

Commenting on the deal, Ralph Findlay, chief executive of Marston’s, said: “Marston’s strong heritage, extensive distribution platform and established reputation for brewing and logistics excellence, together with Carlsberg UK’s values, long history in beer, brand portfolio and scale, combine the best attributes of both to create a compelling beer business with an outstanding portfolio of global and local beer brands, proven brewing expertise, strong distribution network and wholesale opportunity.

“Marston’s will play a key role in the prospects of the combined entity which represents an exciting new chapter in Marston’s established brewing heritage and future potential, whilst enabling it to further reduce its debt and focus on maximising value from its high quality pub estate.”

Cees ‘t Hart, Chief Executive of Carlsberg Group, added: “The creation of the joint venture is an important step forward for our UK business. The joint venture’s brand portfolio will allow us to offer a significantly stronger beer portfolio to our UK customers.

“In addition, the combined business will bring our customers wider choice, greater capacity, product innovation and marketing and distribution efficiency benefits.”