UK: Anheuser-Busch InBev sells Tennent's to C&C Group

Anheuser-Busch InBev has signed a deal to sell Tennent's in Scotland to C&C Group for GBP180m (US$292m).

The global brewer, which is committed to selling of US$7bn of non-strategic assets, said today (27 August) that C&C Group will acquire the Tennent's lager brand and associated trading assets in Scotland, Northern Ireland and the Republic of Ireland.

The sale price represents 8.3x A-B and InBev's combined EBITDA in 2008, A-B InBev said.

Included in the sale are the Glasgow Wellpark Brewery in Scotland, where Tennent's Lager is brewed, rights to the Tennent's Lager brand itself, Tennent's Ales and assets located in Scotland, Northern Ireland and the Republic of Ireland.

As part of the agreement, A-B InBev will appoint C&C as distributor of certain of its brands in Scotland, Northern Ireland and the Republic of Ireland. C&C will subsequently grant A-B InBev the right to use the Tennent's Super and Tennent's Pilsner brands in certain international markets.

"The sale of these assets will unlock value for our shareholders and ensure continued support for our global brands in the region through distribution agreements with key partners," said A-B InBev's CEO, Carlos Brito. "C&C is a strong strategic buyer who is well-positioned to invest in and advance these assets within their respective geographies."

For C&C Group, the deal gives the firm a fresh avenue of income amid tough times for its cider business.

While the transaction remains subject to approval by C&C shareholders, completion of employee consultation, and applicable approvals, the two companies expect to complete the transaction by the end of this year.

An update, following a C&C Group conference call, appears here.