Molson Coors to Acquire Central and Eastern European Brewer StarBev

Canada, Czech Republic, Europe, Netherlands, North America, United States

Acquisition of Market-Leading Brewer Brings Significant Growth
Opportunities in Attractive Markets

StarBev Adds Strong Brand Portfolio, Enhanced Scale and Growth

Value-Enhancing Transaction Expected to be Accretive to Earnings
in First Full Year


Molson Coors Brewing Company (NYSE: TAP; TSX) today announced that it
has signed a definitive agreement with StarBev L.P., owned by funds
(CVC Funds) advised by CVC Capital Partners Limited (CVC) and
StarBev management, to acquire StarBev for 2.65 billion ($3.54
billion). Headquartered in Amsterdam, The Netherlands, and Prague, Czech
Republic, StarBev operates nine breweries in Central and Eastern Europe
(CEE) and generated 2011 sales of approximately 0.7 billion ($1.0
billion) and earnings before interest, taxes, depreciation and
amortization (EBITDA) of 241 million ($322 million).1 The
purchase price represents a multiple of approximately 11x EBITDA.

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

StarBev, as a market leader in the CEE region, 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, StarBevs international flagship brand, will also
enhance our portfolio in some of our current and planned markets.

StarBev, which employs approximately 4,100 people, has brewing
operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria,
Hungary, Montenegro and also sells its brands in Bosnia-Herzegovina and
Slovakia. StarBev brews 13.3 million hectoliters annually and holds a
top three market share position in each of its markets. Starbevs
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, Becks, Hoegaarden, Lowenbrau
and Leffe under license.

Following the acquisition, Molson Coors expects that significantly more
of its revenue will come from growth and emerging markets. The CEE
markets are expected to benefit from positive volume and per capita
consumption trends over the long-term.

Mr. Swinburn continued, Making targeted acquisitions that expand our
global presence and drive shareholder value is a key pillar of our
stated growth strategy. We are committed to being disciplined buyers. We
believe this acquisition, which is financially compelling and meets all
of our return on capital requirements, is consistent with these goals.

Molson Coors expects the transaction to be accretive to earnings in the
first full year of operations and to generate approximately $50 million
of pre-tax operational synergies by 2015, primarily through production
efficiencies, procurement, systems and related areas.

Mr. Swinburn concluded, StarBev is a strong brewing operation with
great brands, talented management and employees who will benefit from
being part of a global, brand-led brewing company that can bring
additional innovation and marketing expertise to their operations. We
have very exciting plans for growing this business and its brands. We
are impressed with StarBevs operations and look forward to working with
the StarBev team to capitalize on the great opportunities in their

Alain Beyens, CEO of StarBev said: We are delighted to become part of
one of the worlds 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.

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 remain headquartered in the Czech

Molson Coors has committed financing in place to complete the
acquisition. At current foreign exchange rates, permanent financing is
expected to consist of $3.0 billion in cash and debt, and an additional
500 million ($667 million) in convertible debt issued to the seller,
which enables them to participate in future upside. Molson Coors expects
to maintain investment grade ratings following the close of the

Morgan Stanley & Co. LLC acted as lead financial advisor to Molson
Coors. Barclays and Deutsche Bank Securities acted as co-financial
advisors. Morgan Stanley Senior Funding, Inc. and Deutsche Bank
Securities are providing committed debt financing for the transaction.
Kirkland & Ellis LLP acted as legal advisor to Molson Coors.

Webcast Information

Molson Coors will conduct a conference call with financial analysts and
investors on April 3, 2012 at 8:30 a.m. Eastern Daylight Time (US) to
discuss the agreed transaction. The Company will provide a live webcast
of the conference call, which can be accessed at
A presentation will be posted to the website approximately 15 minutes
prior to the start of the conference call/webcast. A recording of the
webcast and the conference call will be available at
until 11:59 p.m. E.T. on April 3, 2013.

Overview of Molson Coors Brewing Company

Molson Coors Brewing Company is one of the worlds largest brewers. The
Companys 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 companys web

Forward-Looking Statements

This press release includes estimates or projections that constitute
forward-looking statements within the meaning of the U.S. federal
securities laws.
Generally, the words believe, expect,
intend, anticipate, project, will, and similar expressions
identify forward-looking statements, which generally are not historic in
Although the Company believes that the assumptions upon
which its forward-looking statements are based are reasonable, it can
give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ materially
from the Companys historical experience, and present projections and
expectations are disclosed in the Companys filings with the Securities
and Exchange Commission (SEC).
These factors include, among
others, our ability to successfully integrate StarBev, retain key
employees and achieve planned cost synergies; our ability to obtain
necessary regulatory approvals for the acquisition; pension plan costs;
availability or increase in the cost of packaging materials; our ability
to maintain manufacturer/distribution agreements; impact of competitive
pricing and product pressures; our ability to implement our strategic
initiatives, including executing and realizing cost savings; changes in
legal and regulatory requirements, including the regulation of
distribution systems; increase in the cost of commodities used in the
business; our ability to maintain brand image, reputation and product
quality; our ability to maintain good labor relations; changes in our
supply chain system; additional impairment charges; the impact of
climate change and the availability and quality of water; the ability of
MillerCoors to integrate operations and technologies; lack of
full-control over the operations of MillerCoors; the ability of
MillerCoors to maintain good relationships with its distributors; and
other risks discussed in our filings with the SEC, including our Annual
Report on Form 10-K for the year-ended December 31, 2011, which are
available from the SEC.
All forward-looking statements in this
press release are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place undue
reliance on forward-looking statements, which speak only as of the date
they are made.
We do not undertake to update forward-looking
statements, whether as a result of new information, future events or

1 StarBev results are provided pursuant to International
Financial Reporting Standards.


Molson Coors Brewing Company
News Media
Colin Wheeler
Dave Dunnewald

KEYWORDS: United States Europe North America Canada Netherlands Czech Republic Colorado

INDUSTRY KEYWORDS: Retail Food/Beverage