[IBU] SABMiller To Bid $1.2 Billion For Grolsch

[Becker, Steven]

SABMiller To Bid $1.2 Billion For Grolsch

Manufacturing.Net - November 19, 2007

AMSTERDAM, Netherlands (AP) - SABMiller, the world's third-largest
brewer, said Monday it will bid $1.2 billion for Grolsch, the Dutch beer
with a distinctive swivel cap.
 
Grolsch is the second-largest Dutch brewer after Heineken, with
approximately 15 percent market share in the Netherlands.
 
In a joint statement, the companies said Grolsch would back the 48.25
euros ($70.57) per share offer, which they said offered a premium of
more than 80 percent to Grolsch's average share price over the past
month.
 
Grolsch NV shares leapt 76 percent to 47.40 euros ($69.33) in early
trading in Amsterdam on Monday.
 
Shares in SABMiller PLC fell 0.9 percent to 13.32 pounds ($27.23) in
London.
 
SAB said it believed it would be able to grow Grolsch's brand more
quickly than the company could independently. It sees growth ''potential
for the Grolsch brand across Africa and Latin America, where the premium
segment is still in its infancy, and in the more developed markets of
Central and Eastern Europe.''
 
In a video statement, SABMiller's marketing director Nick Fell said
''for anybody looking to grow their premium brand business, this is an
absolute peach of a brand to get hold of.''
 
A formal offer will be launched in January and is subject to regulatory
approvals and a 75 percent acceptance by Grolsch shareholders, the
companies said. However, Grolsch shareholders representing 37 percent of
shares have agreed in advance to tender their shares to the offer.
 
Both companies report earnings twice a year. For the six months through
June 30, Enschede-based Grolsch's earnings were 7.6 million euros ($11
million) on sales of 164 million euros ($216 million).
 
London-based SABMiller had net profit of $958 million (654 million
euros), on sales of $10.78 billion (7.36 billion euros) in the same
period.
 
SABMiller makes Miller beers, Pilsner Urquell and Peroni, among others.
 
Grolsch is known almost entirely for its Grolsch lager, which accounts
for 90 percent of sales worldwide, though it has introduced a range of
seasonal beers and a white beer in the Netherlands. It has sales in
Britain, the U.S., Canada, France, Australia and New Zealand.
 
http://www.manufacturing.net/SAB-Miller-Bidding-For-Grolsch.aspx?menuid=
36


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