BELGIUM: Anheuser-Busch InBev sells Eastern Europe assets

By | 15 October 2009

Anheuser-Busch InBev has agreed to sell brewing assets in Eastern Europe to private equity group CVC Capital Partners for US$2.2bn, taking the brewer over its $7bn disposals target.

Announcing the long-awaited deal today (15 October), A-B InBev may get a further $800m from the deal, depending upon the financial performance of the businesses under CVC.

Assets to be sold to CVC are A-B InBev operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia.

Carlos Brito, CEO of A-B InBev, said: "We are pleased to announce this transaction which enables us to exceed our stated commitment to achieve $7bn in divestitures, while better focusing our resources towards our core markets."

The deal includes the Staropramen brewery in Czech Republic, but A-B InBev will retain the right to brew and distribute Staropramen in several countries including Ukraine, Russia, the US, Germany and the UK.

The brewer will also have first refusal to buy back the brewing assets, should CVC decide to sell in the future.

CVC raised around $1bn in financing from banks for the deal, which is expected to be completed by January 2010, according to both companies.

The deal is structured as an initial payment of $1.6bn in cash, with $448m in an unsecured deferred payment obligation with a six-year maturity and $165m in minority interests, A-B InBev said.

Earlier this month, A-B InBev agreed to sell theme parks previously owned by A-B to private equity group Blackstone for $2.7bn

 

Sectors: Beer & cider

Companies: InBev, Anheuser-Busch

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