HEINEKEN ACQUIRES GALAXY PUB ESTATE IN UNITED KINGDOM
(Thomson Reuters ONE) -
Amsterdam - 2 December 2011 - HEINEKEN N.V. announced today that it has acquired
the Galaxy Pub Estate ('Galaxy') in the U.K. from The Royal Bank of Scotland
('RBS') for £412 million (?480 million) on a cash-and-debt-free basis. A further
£10 million (?12 million) has been paid to settle accrued amounts owed under an
existing management agreement between RBS and HEINEKEN.
Galaxy consists of 918 high-quality, largely freehold pubs and has been managed
by Scottish & Newcastle Pub Company ('S&NPC'), a HEINEKEN subsidiary, since
1999 on behalf of RBS. Galaxy will be combined with HEINEKEN U.K.'s existing
portfolio of 462 outlets. Following this acquisition, HEINEKEN will become one
of the leading pub owners and operators in the U.K.
The provisional fair value of the pubs on HEINEKEN's balance sheet will be £378
million (?441 million), implying a multiple of 7.2 times based on a trailing 12-
month EBITDA of £52.3 million (?61.0 million) for the estate. The early
amortisation and termination of associated contracts under the acquisition is
expected to give rise to a one-off, pre-tax P&L expense for HEINEKEN in 2011 of
£28 million (?33 million). This will be treated as an exceptional item in the
fourth quarter of 2011. HEINEKEN expects the acquisition to be earnings
accretive from December 2011 and value enhancing in the first year after
completion.
Commenting on the transaction, Didier Debrosse, Regional President Western
Europe for HEINEKEN, said: "Today's acquisition of Galaxy is consistent with our
strategy of driving future value growth in Europe and represents another step in
the successful turnaround of our U.K. business. Our ownership of this estate
strengthens our leading position in the U.K. beer and cider market, particularly
in the valuable on-trade channel."
Stefan Orlowski, Managing Director of HEINEKEN U.K., added: "There continues to
be an important role for the great British pub in the U.K. on-trade, and this
acquisition is a significant vote of confidence in the channel. Owning the
Galaxy freehold will allow us to continue the successful transformation of our
pub business, concentrate on operational excellence and deliver long-term value
from a high-quality, well invested pub estate."
The agreement has no impact on S&NPC's existing lessees, who will continue to
trade on a 'business as usual' basis.
###
Press enquiries
John-Paul Schuirink
Financial Communications Manager
Tel. +31 20 5239 355
E-mail: john-paul.schuirink(at)heineken.com
Nigel Pollard
Head of External Communications, HEINEKEN U.K.
Tel. +44 77 85 531 756
E-mail: nigel.pollard(at)heineken.co.uk
Investor and analyst enquiries
George Toulantas
Director of Investor Relations
Tel. +31 20 5239 590
E-mail: investors(at)heineken.com
Note to editors
Galaxy has outperformed the market under S&NPC's management and HEINEKEN expects
the U.K. pub sector to maintain value in the longer term.
Over the past three years, S&NPC has successfully implemented a turnaround plan
by exiting a number of unprofitable contracts to become a more efficient
business, which is fully aligned and integrated within HEINEKEN U.K.'s on-trade
division. The Blue Star (formerly Globe) pub estate has been restructured so
that it is now profitable and outperforming the market.
From a strategic standpoint, the Galaxy acquisition will:
* Build on an ambitious turnaround plan for the S&NPC business and provide a
stable platform from which to unlock the potential value of the company's
pub estate;
* Secure the long-term beer and cider supply and provide a significant shop
window for the company's future innovations and leading brands, including
Heineken, Foster's, Strongbow and Bulmers;
* Enable HEINEKEN to benefit from the higher quality of the integrated Galaxy
and Blue Star pub estates to further enhance profitability;
* Allow S&NPC's management team to further utilise its strong track record as
pub operators and existing knowledge of the estate to focus on driving
operational excellence and quality of service to lessees.
Editorial information
HEINEKEN is one of the world's great brewers and is committed to growth and
remaining independent. The brand that bears the founder's family name - Heineken
- is available in almost every country on the globe and is the world's most
valuable international premium beer brand. The Company's aim is to be a leading
brewer in each of the markets in which it operates and to have the world's most
valuable brand portfolio. The Company is present in over 70 countries and
operates 140 breweries with volume of 205 million hectolitres of beer sold on a
pro-forma basis. HEINEKEN is Europe's largest brewer and the world's third
largest by volume. The Company is committed to the responsible marketing and
consumption of its more than 200 international premium, regional, local and
specialty beers and ciders. These include Heineken, Amstel, Birra Moretti,
Cruzcampo, Dos Equis, Foster's, Kingfisher, Newcastle Brown Ale, Ochota, Primus,
Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. On a 2010 pro-forma
basis, including FEMSA Cerveza, revenue totalled ?17 billion and EBIT (beia) was
?2.7 billion. The average number of people employed is more than 70,000.
HEINEKEN N.V. and HEINEKEN Holding N.V. shares are listed on the Amsterdam
stock exchange. Prices for the ordinary shares may be accessed on Bloomberg
under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service
under HEIN.AS and HEIO.AS. Most recent information is available on HEINEKEN's
website:www.theHEINEKENcompany.com
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Source: HEINEKEN NV via Thomson Reuters ONE
[HUG#1568372]
Unternehmensinformation / Kurzprofil:
Datum: 02.12.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 93423
Anzahl Zeichen: 6965
contact information:
Town:
Amsterdam
Kategorie:
Business News
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