Asahi to buy New Zealand’s beverage firm Independent Liquor for $1.28 billion

Asahi Group Holdings Ltd today agreed to buy New Zealand's beverage maker Independent Liquor Ltd, for NZ$1.53 billion ($1.28 billion) to further strengthen Japan's biggest beer maker's overseas beverages business.

The proposed deal comes after last month Asahi agreed to buy the water and juice businesses of P&N Beverages Australia, the third largest soft drink company by volume in Australia, for A$188 million and Charlie's Group Ltd, a New Zealand-based fruit juice producer, for NZ$130 million. (See: Japan's Asahi to buy Charlie's in New Zealand, P&N's water, juice business in Australia)

Tokyo-based Asahi, known for its popular "Super Dry" beer, is buying Flavoured Beverages Group Holdings, the parent company of Independent Liquor from private equity firms Australia's Pacific Equity Partners and Hong Kong-based Unitas Capital.

The two private equity groups took majority ownership of Independent Liquor or an 87.8-per cent stake through a NZ$1.26-billion deal in December 2006 with founder Michael Urceg's widow, Lynette's 12.2-per cent holding.

Auckland-based Independent Liquor is New Zealand's biggest maker of premixed alcoholic beverages with brands such as Woodstock bourbon drinks and Vodka Cruiser. It holds the top share in New Zealand's alcoholic ready-to-drink market and ranks third in Australia.

Through its Boundary Road Brewery, Independent Liquor is active in the beer and cider markets and also brews global brands Carlsberg, Tuborg and Kingfisher under licence.