AB InBev sells East European beer operations to CVC for $2.2 billion
15 Oct 2009
The world's largest brewer, Anheuser-Busch InBev (AB InBev), formed through the merger of Anheuser Busch and InBev last year, yesterday said that it is selling its East European operations to global buy-out firm CVC Capital Partners (CVC), for $2.23 billion.
Under the deal, funds advised by CVC have agreed to acquire AB InBev's operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia.
Luxembourg and UK-headquarted CVC has also agreed to brew and distribute AB InBev's beer brands like Stella Artois, Beck's, Löwenbräu, Hoegaarden, Spaten and Leffe in Central Europe under license from AB InBev.
AB InBev will retain rights to brew and distribute Staropramen beer from the Czech Republic operation in several countries including Ukraine, Russia, the US, Germany and the UK.
The brewer will receive $1.68 billion in cash, with an additional $613 million in deferred payments and minority interests, with the possibility of another $800 million from future earnings.
CVC will also take on $448 million in debt of the East European operations of ABI in a deal that allows the brewer the right of first refusal to reacquire the business should CVC decide to sell in the future.