InBev today said it is acquiring the remaining 45% interest in Hunan Debier Brewery Company Co. Ltd., located in Hunan province, China, for a cash consideration of US$18.2m.

The company said the transaction is part of its ongoing integration process of the Lion Group Breweries, which it acquired earlier this year. The transaction is expected to close by year end 2004.

InBev currently has two breweries in the Eastern Chinese province of Hunan (66.6 m inhabitants), the Hunan Debier Brewery in the city of Changsha and Zhuzhou Debier Brewery Co. Ltd in the city of Zhuzhou.

Both breweries were acquired as part of the transaction with the Malaysian Lion Group, which sold its China brewery operations to InBev at the beginning of this year.

As part of that transaction, InBev acquired 55% of the Hunan Debier Brewery. Today InBev announces the acquisition of the remaining 45% from Changsha Baisha Brewery Limited Liability Company.

This transaction was completed at an EV/EBITDA multiple of 7.7x and at an EV/hl multiple of Euro29. Management expects this acquisition to be EPS accretive to InBev, from 2005 before goodwill amortization.

"With this acquisition, Interbrew China has reinforced its position in Hunan, further illustrating its commitment to the province," says Patrice Thys, president InBev Asia Pacific Zone. "We are very pleased with the support we have received from the local government."

"We are delighted to see Interbrew's strong commitment in the Hunan market through this transaction," says Mayor Tan of Changsha Government. "Interbrew shall receive full support from the Changsha Government for its investments in Changsha going forward."