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Close Brothers Group PLC on Tuesday said it has agreed to sell its business that rents beer kegs and casks to a fund managed by MML Capital, as the UK merchant bank seeks to simplify its portfolio and focus on core lending operations. The disposal of Close Brewery Rentals Ltd to MML Keystone is expected to complete within the 2025 calendar year. Close Brothers created the business in 2007 to rent and maintain kegs and casks for the brewing industry. Today it operates three UK sites and manages a fleet of over one million containers. The bank didn’t provide the financial details of the sale. It said the transaction will generate a ‘modest gain’ on disposal and provide a capital benefit, though it will not have a material impact on the group’s adjusted operating profit. Chief Executive Mike Morgan said the decision reflects the capital requirements needed to unlock further growth at CBRL, adding: ‘We believe that this is the right time to sell CBRL given the capital needed to maximise its growth potential and our focus on simplifying our business portfolio.’ Despite the exit, Close Brothers will continue to offer financing to breweries and distilleries through its Beverage Finance arm, which had a loan book of around £35 million as of January. MML Capital said it would rebrand the business as ’ekeg’ and sees a significant opportunity in the pooling and efficient reuse of packaging assets. Shares in Close Brothers were up 0.2% at 399.00 pence in London on Tuesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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