just On Call: Molson Coors CEO - StarBev on the radar "for a long time"
Coors has agreed a deal to buy StarBev for US$3.54bn
Molson Coors CEO has revealed that StarBev has been on the Canadian brewer's radar “for a long time” and part of the attraction was that it “looked like a clean deal”.
Earlier today (3 April), Molson Coors announced it has an agreed a deal to acquire the Czech brewer for US$3.54bn from private equity group CVC. Peter Swinburn, Coors CEO and chairman, told an investor and analysts conference call: “It's a business we've had on the radar for a long time. The opportunity just came along to acquire it now.
“We did do a huge amount of research on the business and, once we engaged with CVC, a huge amount of due diligence in all the markets.”
He added: “It looks like a very clean deal to us.”
Swinburn said the deal fulfilled part of the company's strategy of “smart M&A” and did not rule out similar acquisitions in future.
He said he expected Molson Coors' percentage of revenue from outside Canada, the US and UK to grow from "low single digits to mid teens", as a result of the deal.
The North American brewer said earlier that StarBev will be operated as a separate business within the company and will remain headquartered in Czech. Swinburn said discussions had already been carried out with StarBev management and had been “positive”.
Despite the deal, he stressed that Coors' “number one focus” remains investing in its brands in its existing markets.
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