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Highlights:

  • CBG agrees to sell Close Brewery Rentals (CBRL) to MML Keystone; transaction to close in 2025.
  • Close Brothers to retain GBP 35 million loan book through its Beverage Finance lending division.
  • CBG aims to simplify business portfolio and focus on lending-led growth opportunities.

Close Brothers Group plc (LSE:CBG), a UK-based merchant banking group offering lending, deposit-taking, wealth management, and securities trading services, has announced the planned sale of Close Brewery Rentals Limited (CBRL) to MML Keystone, a fund managed by MML Capital. The disposal is expected to be completed within the 2025 calendar year, subject to standard closing conditions.

Founded in 2007, CBRL has grown under Close Brothers’ ownership to become a leading provider of keg and cask rental and maintenance services in the UK and Ireland. The business currently serves over 500 breweries and has established a meaningful presence in the beverage logistics sector. The sale marks the next step in Close Brothers’ strategy to streamline operations and reallocate capital to core areas of long-term growth.

The transaction is anticipated to deliver a modest gain on disposal and capital benefit, though the group clarified that the divestment will not have a material ongoing impact on its Adjusted Operating Profit. The move supports Close Brothers’ stated strategic priorities of simplifying its portfolio and focusing on operational efficiency and lending-led growth.

Although Close Brothers will exit the brewery container rental segment, it will maintain a foothold in the broader beverage market through its specialist lending arm Close Brothers Beverage Finance. This unit, which had a loan book of approximately GBP 35 million as of 31 January 2025, continues to provide equipment financing solutions to UK breweries and distilleries. The group views this segment as a scalable opportunity in a niche market with consistent demand.

Group Chief Executive Mike Morgan noted, “We have grown CBRL over the past 18 years into a business serving hundreds of clients. However, now is the right time to divest, given the capital requirements to fully develop its growth potential. Our focus remains on simplifying the group and investing in areas aligned with our core lending capabilities.”

Following the acquisition, CBRL will be rebranded as “ekeg,” under MML’s ownership. MML Keystone Co-Managing Partner Andrew Honan commented, “We see asset pooling as a critical area of investment, combining environmental value with economic efficiency for clients. CBRL fits well within our strategy, and we’re excited to work with the team to take the business forward.”

Close Brothers has reaffirmed its commitment to the beverage finance sector, identifying it as a niche market with ongoing lending demand. 

This divestment comes amid broader industry trends where financial institutions are consolidating or spinning off non-core operations to improve returns on capital. In this context, Close Brothers’ disposal of CBRL aligns with a pattern of refocusing efforts around core banking and financing activities, a theme consistent with recent updates from peer institutions in the UK financial sector.

The company has not disclosed the specific financial terms of the sale beyond referencing modest capital gains and operational impact. 

CBG trading at 1.00% higher at GBX 402.20 per share as on 15 July 2025.