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Molson Coors Brewing To Buy StarBev For $3.54 Bln - Quick Facts

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Molson Coors Brewing Co. (TAP,TAP-A, TPX_A.TO, TPX_B.TO) said it has signed a definitive agreement with StarBev L.P., owned by funds advised by CVC Capital Partners Ltd. and StarBev management, to acquire StarBev for 2.65 billion euros, or $3.54 billion.

Molson Coors expects the acquisition to be accretive to earnings in the first full year of operations and to generate approximately $50 million of pre-tax operational synergies by 2015, primarily through production efficiencies, procurement, systems and related areas.

Following the acquisition, Molson Coors anticipates that significantly more of its revenue will come from growth and emerging markets. The Central and Eastern Europe markets are expected to benefit from positive volume and per capita consumption trends over the long-term.

The acquisition 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.

Molson Coors said it has committed financing in place to complete the acquisition. At current foreign exchange rates, permanent financing is expected to consist of $3.0 billion in cash and debt, and an additional 500 million euros in convertible debt issued to the seller, which enables them to participate in future upside. Molson Coors expects to maintain investment grade ratings following the close of the deal.

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