Japan’s Asahi Breweries buys Australia’s P&N Beverages for $323 million

Asahi Breweries yesterday said that it is buying Australia's P&N Beverages for A$364 million ($323 million) in cash, reflecting Japan's second-largest brewer after Kirin Brewery aggressive push into the Australian beverage market.

The move comes after Asahi acquired Cadbury Schweppes Beverages business in Australia for $795.9 million in cash in 2009, (See: Cadbury sells Schweppes Beverages to Asahi for $796 million) and is seen as one of the potential contenders to buy Fosters Group Ltd, the beer making arm of Australia's largest brewing company Carlton and United Breweries. (See: SABMiller said to be mulling a $10.9 billion bid for Fosters Group) 

Sydney-based P&N, which is Australia's third largest soft drink company by volume, has a product portfolio of over 30 brands that include carbonated soft drinks, juice, water and cordials.

Its major brands include Frantelle Spring Water, Extra Juicy, Pop Tops, Pub Squash, Waterfords Mineral Water, Tru Blu carbonated soft drinks and Wicked.

P&N also manufactures a range of private label beverages for major grocery customers, an important and growing segment of the Australian market. For 2009, P&N had sales of A$384.7 million ($341.2 million) and earnings before interest and tax of A$33.2 million ($29.4 million).

Tokyo-based Asahi aims to merge P&N Beverages with Asahi Schweppes Australia, the country's second-largest soft drink maker to further strengthen its Australian and overseas soft drinks business, capture synergies across the Asahi group of companies and establish a platform in Australia to facilitate the group companies' growth in Oceania.