Coors to buy Staropramen owner

04 April, 2012

Molson Coors is to purchase Staropramen brewer StarBev for €2.65 billion ($3.54 billion). 

StarBev is headquartered in Amsterdam, The Netherlands, and Prague, Czech Republic. It operates nine breweries in Central and Eastern Europe.

In 2011 the company generated sales of approximately €0.7 billion ($1.0 billion) and earnings before interest, taxes, depreciation and amortization (EBITDA) of €241 million ($322 million). The purchase price represents approximately 11x EBITDA.

Peter Swinburn, president and chief executive officer of Molson Coors said: “The acquisition of StarBev fits squarely into Molson Coors’ strategy to increase our portfolio of premium brands and deepen our reach into growth markets around the world.

“The central and eastern European beer market is attractive, with strong historical trends and upside potential as the region returns to its pre-economic-crisis growth rates.

“Staropramen, StarBev’s international flagship brand, will also enhance our portfolio in some of our current and planned markets.”

StarBev, which employs approximately 4100 people, has brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro and also sells its brands in Bosnia-Herzegovina and Slovakia. StarBev brews 13.3 million hectoliters annually and holds a top-three market share position in each of its markets. Starbev’s portfolio includes Borsodi, Kamenitza, Bergenbier, Ozusko, Jelen and Niksicko and also distributes brands such as Stella Artois, Beck’s, Hoegaarden, Lowenbrau and Leffe under licence.

The transaction is subject to approval by certain European competition authorities and is expected to close in the second quarter of 2012. Following the close, StarBev will be operated as a separate business unit within Molson Coors and will remain headquartered in the Czech Republic.





Comment

Christian Davis

Drinking Danishly

So, Danish brewer is spending £15m on revitalising its flagship Carlsberg Export brand (see news story) and at the core of activity is emphasising the company’s Danish origins.

Click for more »

Events

Facebook

Twitter