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Heineken N.V. — M&A Activity 2008
May 22, 2008
3848_iss_2008-05-22_e6cb660a-820c-47ce-8013-aa9ced03da62.pdf
M&A Activity
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press release
Heineken acquires Rechitsa brewery in Belarus
Amsterdam, 22 May 2008 – Heineken N.V. announced today that it is to acquire the Rechitsa brewery, strengthening Heineken's number two position in the fast growing Belarus market giving the company a production share of 24%.
Under the terms of the transaction, Heineken has agreed to invest US\$ 9.9 million (EUR 6.4 million) in an increase in the share capital of Rechitsa, ultimately leading to a 51% share in the company. The transaction is to be financed from existing credit facilities and will be immediately earnings enhancing and value enhancing in 2010. The proposed acquisition is subject to regulatory approvals.
In 2007, Rechitsa sold 285,000 hectolitres, equating to a national production share of 8%. The brewery, has a technical capacity of 525,000 hectolitres, employs 588 staff and is located in the city of Rechitsa in South Eastern Belarus, 280 km from Minsk. The business also operates a maltery, with a capacity of 10,000 tons. The portfolio consists of the mainstream beer brand Rechitsa and its 6 sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG, which has three variants.
Nico Nusmeier, Regional President Central and Eastern Europe, Heineken N.V. commented: "Following the acquisition of Syabar in December 2007, this transaction underlines our confidence in the potential of the Belarus beer market. The combination of Syabar and Rechitsa will give us a complementary brand portfolio, a leading position in South Eastern Belarus and a strong platform on which to grow our Russian brands, the fastest growing segment in this region".
Editorial information
Heineken N.V. is the most international brewer in the world. The Heineken brand is sold in almost every country in the world and the Company owns over 115 breweries in more than 65 countries. In 2007, Group beer volume amounted to 139 million hectolitres and ranks Heineken fourth in the world beer market by volume. Heineken strives for an excellent sustainable financial performance through marketing a portfolio of strong local and international brands with the emphasis on the Heineken brand, through a carefully selected combination of broad and segment leadership positions and through a continuous focus on cost control. In 2007, revenue amounted to EUR12.6 billion and Net Profit before exceptional items and amortisation of brands amounted to EUR1.1 billion. Heineken employs 54,000 people. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. Additional information is available on Heineken's home page: http://www.heinekeninternational.com.
Véronique Schyns Jan van de Merbel Tel: +31 (0)20 5239 355 Tel: +31 (0)20 5239 590 [email protected] [email protected]
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