US: Coors says Carling better-than-expected buy
Adolph Coors has said that its acquisition of the UK's leading lager brand Carling, will add more to earnings than first expected.
When the deal was first announced the US-based company said it would result in mid-to-high single digit additions to earnings per share, followed by double-digit accretion.
But in a meeting with analysts and investors Corrs Brewing CEO Leo Kiely said: "We're confident that we can not only meet, but we can beat those projections. And the more we learn about the company, the more we learn about the opportunity, the surprises tend to be positive surprises."
He told the meeting that Carling Brewers will add 40% to the company's volume, over 50% to its revenue, and over 60% to its operating profits. He also said Coors got the business for a reasonable price because there were no synergies that it offered for any of the competing bidders.
The fact that Carling's portfolio of brands was bucking the trend of the declining UK beer market was also pointed out by Rob Klugmen, Coors' chief international officer. The top brand, Carling, has tremendous growth, he said.
"In this deal, it just looked better and better the more we learned about it. And since we bought it, not quite four weeks ago, it looks better still. It's a terrific company," said Klugman.
Companies: Adolph Coors
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