03/04/2012 — LONDON — (BUSINESS WIRE)
CVC Capital Partners today announced that Molson Coors Brewing Company
(NYSE: TAP; TSX) has signed a definitive agreement with StarBev L.P.,
owned by funds advised by CVC Capital Partners Limited (“CVC”) and
StarBev management, to acquire StarBev for ˆ2.65 billion ($3.54
billion). Headquartered in Amsterdam, Netherlands and Prague, Czech
Republic, StarBev operates nine breweries in Central and Eastern Europe
(“CEE”) and generated 2011 sales of nearly ˆ0.7 billion ($1.0 billion)
and earnings before interest, taxes, depreciation and amortization
(EBITDA) of ˆ241 million ($322 million).
“The acquisition of StarBev fits squarely into Molson Coors’ strategy to
increase our portfolio of premium brands and deepen our reach into
growth markets around the world,” said Peter Swinburn, President and
Chief Executive Officer of Molson Coors. “The Central and Eastern
European beer market is attractive, with strong historical trends and
upside potential as the region returns to its pre-economic-crisis growth
rates. As a market leader in the CEE region, StarBev provides Molson
Coors with a great platform for growth and an excellent foundation from
which to extend our key brands, such as Carling, into Central and
Eastern Europe. Staropramen will also enhance our portfolio in some of
our current and planned markets.”
Alain Beyens, CEO of StarBev added: “We are delighted to become part of
one of the world’s largest brewers. It has been great to work with CVC
as we have developed and grown this business over the last few years.
Their support has enabled StarBev to become a leading innovator of
world-class brands. I am convinced Molson Coors will take StarBev to the
next level of development and growth.”
CVC invested in StarBev L.P. for it to acquire AB-InBev’s CEE brewing
assets in December 2009. Since then StarBev has invested heavily in
capital expenditure, marketing and brand development to create a highly
successful, standalone company. By supporting StarBev to achieve
leadership in innovation, CVC helped the company increase market share
and grow profitability, despite the challenging economic climate.
István Szőke, CVC Partner and Head of CEE for CVC stated: “We are very
pleased with the success of CVC’s first investment in the CEE region.
Since CVC invested in StarBev in 2009 we have created an innovation
driven, highly profitable and cash generative company from a collection
of assets during a difficult period economically and for the industry.
StarBev is now well-placed for future growth and has a great new home in
Molson Coors. The CVC team wishes Alain, Peter and their teams continued
success and growth.”
StarBev, which employs approximately 4,100 people, has brewing
operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria,
Hungary, Montenegro and also conducts operations in Bosnia-Herzegovina
and Slovakia. StarBev brews approximately 13 million hectoliters
annually and holds a top 3 market share position in each of its markets.
StarBev’s portfolio of more than 20 brands includes local champions such
as Borsodi, Kamenitza, Bergenbier, Ozusko, Jelen and Niksicko and also
distributes brands such as Stella Artois, Beck’s, Hoegaarden, Lowenbrau
and Leffe under license.
The transaction is subject to approval by certain European competition
authorities and is expected to close in the second quarter of 2012.
Following the close, StarBev will be operated as a separate business
unit within Molson Coors and will be headquartered in the Czech Republic.
Nomura International acted as financial advisor and Freshfields
Bruckhaus Deringer LLP acted as legal advisor to CVC and StarBev L.P.
OVERVIEW OF CVC Capital Partners
CVC is one of the world’s leading private equity and investment advisory
firms. Founded in 1981, CVC today has a network of 20 offices and some
250 employees throughout Europe, US and Asia. Currently, CVC advises
funds on behalf of over 300 investors from North America, Europe, Asia
and the Middle East. CVC Funds seek to identify attractive investments
and develop sustainable, long-term value in close partnership with
The CVC team’s local knowledge and extensive contacts underpin a 31-year
proven track record of investment success. Thanks to its extensive
international presence, CVC excels at pulling together cross-border
resources to assess investment opportunities quickly and consistently,
so allowing sound and timely decisions to be made on questions of value.
This is key both in deal completion and in generating strong returns for
Overview of Molson Coors Brewing Company
Molson Coors Brewing Company is one of the world’s largest brewers. The
Company’s operating segments include Canada, the United States, the
United Kingdom, and Molson Coors International (MCI). The Company has a
diverse portfolio of owned and partner brands, including signature
brands Coors Light, Molson Canadian and Carling. Molson Coors is listed
on the 2011 Dow Jones Sustainability Index (DJSI), the most recognized
global benchmark of sustainability among global corporations. The DJSI
assesses how companies manage risks and seize opportunities across a
wide range of economic, environmental and social dimensions. For more
information on Molson Coors Brewing Company, visit the company’s web
+44 (0) 20 7404 5959
KEYWORDS: United Kingdom Europe Netherlands Czech Republic
INDUSTRY KEYWORDS: Professional Services Finance Retail Food/Beverage Wine & Spirits