Heineken to sell Finland’s Hartwall Ab to Danish Royal Unibrew for $605 mn
11 Jul 2013
Heineken NV, the world's third-largest brewer, today agreed to sell its Finnish multi-beverage business Oy Hartwall Ab to Danish Royal Unibrew, for €470 million ($605 million) including debt.
The transaction is expected to close in the fourth quarter of 2013 and is subject to anti-trust approvals.
Heineken had acquired Hartwall as part of its acquisition of Scottish & Newcastle in 2008.
Under the agreement, Heineken and Royal Unibrew will extend their existing partnership for the next 10 years. Royal Unibrew will obtain a license to brew Heineken beer for Finland, Estonia, Latvia and Lithuania.
Currently, Royal Unibrew brews the Heineken brand in Denmark and distributes the brand in the Baltic countries. In addition, Hartwall will remain the exclusive distributor of Heineken's global and international brands in Finland, including Sol, Strongbow, Newcastle Brown Ale, Krušovice and Murphy's Irish Stout, and will continue to brew Foster's beer under license in the country.
Hartwall is a leader in the Finnish beverage industry with strong market positions in beer, carbonated soft-drinks, waters, long-drinks, ciders, wines and spirits.
Its portfolio includes brands such as Hartwall Jaffa, Novelle, Lapin Kulta, Karjala and Upcider.
Hartwall, which has around 850 employees, generated 2012 revenues and EBITDA of approximately €300 million and €50 million, respectively.
Faxe, Denmark-based Royal Unibrew produces, markets, sells and distributes beverages focusing on branded products within beer, malt and soft drinks, including soda water, mineral water and fruit juices.
The company operates as a leading regional player in a number of markets in Western and Eastern Europe, including Denmark, Germany, Italy, Lithuania and Latvia, and in international malt drinks markets.
Its main brands include Royal, Ceres Strong Ale, Cido, Kalnapilis, Faxe Premium and Vitamalt.
In 2012, the company sold 5.4 million hectolitres of beer, malt and soft drinks and posted revenue of DKK 3.4 billion (around €455 million).
Jean-François van Boxmeer, chairman of CEO of Heineken, said, "We are pleased to announce this transaction, as we are convinced that Hartwall's future development is best served as part of Royal Unibrew, our long-time business partner in Denmark and an important beverage company in the Nordics and Baltics region."
Henrik Brandt, CEO of Royal Unibrew, said, "We really value Hartwall's market position, strong brands and considerable innovation, and the acquisition of Hartwall supports Royal Unibrew's strategy very well. Hartwall and the Finnish market are in many ways similar to our Danish operations.''
