InBev has acquired the remaining 30% interest in KK's brewing activities, located in the Zhejiang Province in China. The transaction enhances InBev's position in the province, where it holds a 50% market share.

InBev acquired a 70% stake of the KK brewing activities in April 2003. The KK breweries are located in the city of Ningbo, 200km south of Shanghai. KK is a leading brewer in the Province of Zhejiang and holds an 80% market share in the city of Ningbo, the second largest harbor in China, after Shanghai.

KK's breweries have a capacity of 3m hl and produced 2.7m hl in 2004. The company's main brands are K and Zizhulin, the standard lagers, and the premium brands KK and One Week. KK's brewing operations include two breweries in Ningbo and Zhoushan, and one bottling line in Yuyao.

The cost of acquiring 100% blended ownership of the company represents an EV/EBITDA multiple of 4.1x and an Enterprise Value per hectoliter capacity of US$18.4. The total consideration is US$61.5m. 

"We are very pleased with obtaining 100% ownership of one of our largest and most profitable operations in China." said Brent Willis, InBev's zone president Asia Pacific.

InBev focuses in China on the more affluent South Eastern provinces of Zhejiang, Guangdong, Hubei, Hunan, Hebei, Jiangsu and Shangdong. It has been active in China since 1984, and is currently the country's third largest brewer.