Heineken N.V. enters into agreement to acquire Brasil Kirin Holding S.A.
(Thomson Reuters ONE) -
Amsterdam, 13 February 2017 - Heineken N.V. ("HEINEKEN") announces today that it
has entered into an agreement with Kirin Holdings Company, Limited ("Kirin") to
acquire Brasil Kirin Holding S.A. ("Brasil Kirin"), one of the largest beer and
soft drinks producers in Brazil. The transaction will transform HEINEKEN's
existing business across the country by extending its footprint, increasing
scale and further strengthening its brand portfolio. On closing, HEINEKEN will
become the second largest beer company in Brazil, with a stronger commercial
platform from which to capture future profitable growth in an exciting beer
market.
Market background
Brazil is the fifth largest country in the world with over 200 million people.
Beer volume in 2015[1] was 139 million hectolitres, making it the third largest
market globally.
Whilst the macroeconomic environment has been challenging over the last few
years, the longer term fundamentals of the Brazilian beer market are highly
attractive supported by a growing population and a positive GDP outlook. In
addition, the premium segment of the beer market, which has outperformed the
broader beer market in recent years, has a relatively low share compared to many
other markets, providing a compelling and attractive opportunity for future
growth.
About Brasil Kirin
Brasil Kirin is a large beer producer in Brazil, operating 12 production
facilities with its own distribution network. It has a particularly strong
presence in the North and North East, where HEINEKEN currently has less
exposure. It owns an extensive portfolio of beer brands and its share of the
Brazilian beer market in 2015 was c.9%(1). The portfolio includes Schin, one of
Brazil's largest brands covering the mainstream and value segments, as well as
the Devassa brand. Furthermore, it owns the speciality brands Baden Baden and
Eisenbahn, which will complement HEINEKEN's existing premium portfolio.
Brasil Kirin also has a soft drinks business comprised of carbonated drinks,
bottled water and other beverages. The soft drinks portfolio, which has around
2%(1) market share, includes the iconic Itubaína brand.
About HEINEKEN Brazil
HEINEKEN expanded its footprint in Brazil through the acquisition of the beer
operations of Fomento Económico Mexicano, S.A.B. de C.V ("FEMSA") in 2010. Since
then, HEINEKEN has increased its market share to c.10%[2], led by Heineken® in
the outperforming premium segment. At the same time, HEINEKEN has continued to
build scale with the Kaiser and Bavaria brands, and has recently seen strong
success with the roll out of Amstel in the mainstream segment. HEINEKEN
currently operates 5 breweries in Brazil and has a strategic distribution
partnership with the Coca-Cola bottlers.
Compelling strategic rationale
HEINEKEN believes that the transaction delivers compelling strategic benefits
for its Brazilian business. In particular it:
* Consolidates HEINEKEN's existing position in the Brazilian market,
broadening its reach across the country;
* Strengthens HEINEKEN's platform to accelerate further premiumisation,
particularly with Heineken® and Sol;
* Provides significant scale from which to drive future growth. The Brasil
Kirin portfolio is highly complementary to HEINEKEN's existing beer
business, and will enable further growth of the well-established Schin,
Bavaria, Kaiser, Amstel and Devassa brands in the mainstream and value
segments; and
* Further increases HEINEKEN's exposure to growth from developing markets and
will enable HEINEKEN to create long term value as a stronger #2 market
player in Brazil.
HEINEKEN Brazil is in the process of reviewing its future route to market and
will provide further detail when appropriate.
Financial highlights
The total consideration to be paid to Kirin for the shares is EUR 664 million,
corresponding to an estimated enterprise value of EUR 1,025 million for
HEINEKEN. Upon completion of the transaction Brasil Kirin will be consolidated
with HEINEKEN.
Brasil Kirin today reported FY results for the year ended 31 December 2016 with
revenue of BRL 3,706 million (2015: BRL 3,698 million) and an operating loss
before amortisation of goodwill, etc. of BRL 262 million (2015: BRL 322
million).
HEINEKEN expects to deliver significant cost synergies from the acquisition
through production efficiencies, including logistics and brewery optimisation,
and through optimising selling, general and administrative expenses.
This transaction is expected to be dilutive to HEINEKEN's margin in 2017. We
will provide more detailed transaction guidance including the necessary
accounting adjustments when appropriate.
Completion of the acquisition is subject to customary regulatory approvals and
is expected in the first half of 2017.
Commenting on the transaction, Jean-Francois van Boxmeer, Chairman & CEO of
HEINEKEN, said:
"This transaction marks a step-change in scale in an exciting beer market,
building on our success to date in the premium segment and strengthening our
platform for future growth. It reiterates our commitment to the Brazilian market
and confidence in our ability to generate attractive returns over the long-term
across all segments of the market. I look forward to welcoming our new
colleagues from Brasil Kirin into HEINEKEN and working with them to take the
combined business forward."
-End-
Press enquiries:
John Clarke
E-mail: pressoffice(at)heineken.com
Tel: +31-20-5239-355
Michael Fuchs
E-mail: pressoffice(at)heineken.com
Tel: +31-20-5239-355
Investor and analyst enquiries:
Sonya Ghobrial
E-mail: investors(at)heineken.com
Tel: +31-20-5239-590
Marc Kanter / Gabriela Malczynska
E-mail: investors(at)heineken.com
Tel: +31-20-5239-590
Editorial information:
HEINEKEN is the world's most international brewer. It is the leading developer
and marketer of premium beer and cider brands. Led by the Heineken® brand, the
Group has a powerful portfolio of more than 250 international, regional, local
and specialty beers and ciders. We are committed to innovation, long-term brand
investment, disciplined sales execution and focused cost management. Through
"Brewing a Better World", sustainability is embedded in the business and
delivers value for all stakeholders. HEINEKEN has a well-balanced geographic
footprint with leadership positions in both developed and developing markets. We
employ approximately 73,000 people and operate 167 breweries, malteries, cider
plants and other production facilities in more than 70 countries. Heineken N.V.
and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for
the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and
HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored
level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX:
HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is
available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via
(at)HEINEKENCorp.
Market Abuse Regulation
This press release contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation.
--------------------------------------------------------------------------------
[1] Source: Canadean.
[2] Source: Canadean.
Please click here for full press release. :
http://hugin.info/130667/R/2077947/781818.pdf
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HEINEKEN NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 13.02.2017 - 07:44 Uhr
Sprache: Deutsch
News-ID 523552
Anzahl Zeichen: 8936
contact information:
Town:
Amsterdam
Kategorie:
Business News
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