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Beerworkers Archive


Post date: 11/12/2015 - 13:24

Molson Coors Agrees to Purchase MillerCoors Stake for USD 12 Billion

On November 11 2015, Molson Coors Brewing Company announced that it has entered into a definitive agreement with Anheuser-Busch InBev SA/NV to purchase SABMiller plc's 58% stake in MillerCoors, the joint venture formed in the United States by SABMiller and Molson Coors in 2008.

On November 11 2015, Molson Coors Brewing Company announced that it has entered into a definitive agreement with Anheuser-Busch InBev SA/NV to purchase SABMiller plc's 58% stake in MillerCoors, the joint venture formed in the United States by SABMiller and Molson Coors in 2008.

Molson Coors currently owns 42% of MillerCoors. Under the agreement, Molson Coors will also acquire full ownership of the Miller brand portfolio outside of the U.S. and retain the rights to all of the brands currently in the MillerCoors portfolio for the US market, including Redd's and import brands such as Peroni and Pilsner Urquell. The transaction is valued at $12.0 billion USD, and is conditioned upon the closing of AB InBev's acquisition of SABMiller, which is expected in the second half of 2016.

The transaction will be financed through a combination of cash on hand and proceeds from issuance of new debt and equity. Molson Coors has received committed debt financing from Citigroup Global Markets, Bank of America Merrill Lynch and UBS Investment Bank.

Molson Coors expects the transaction to add approximately $4.7 billion in incremental revenue and more than $1.0 billion in incremental EBITDA on a pro forma basis. The acquisition is expected to be more than 25% accretive to Molson Coors’ cash earnings in the first full year of operations before the benefit of synergies. Because this is an asset transaction for U.S. tax purposes, it is accompanied by immediate, substantial cash tax benefits that the Company estimates will exceed $250 million annually for the first 15 years after completion. The Company estimates a $2.4 billion net present value of these expected tax benefits. The Company also expects to realize annualized cost synergies of at least $200 million by the fourth full year following the transaction, primarily from procurement improvements, supply network optimization and operational efficiencies. Following the close, Molson Coors would have 2014 pro forma combined worldwide volume of approximately 106 million HL, revenues of $12.2 billion and EBITDA of $2.5 billion.

About Molson Coors
Molson Coors Brewing Company is a leading global brewer delivering extraordinary brands that delight the world's beer drinkers. It brews, markets and sells a portfolio of leading brands such as Coors Light, Molson Canadian, Carling, Staropramen and Blue Moon across The Americas, Europe and Asia. It operates in Canada through Molson Coors Canada; in the US through MillerCoors; across Europe through Molson Coors Europe; and outside these core markets through Molson Coors International. The Company is the only alcohol producer currently recognized for world class sustainability performance through the Dow Jones Sustainability Index. It was listed on the World Index for the past four years and named global Beverage Sector Leader in 2012 and 2013. Molson Coors is constantly looking for ways to improve its Beer Print. For more information on Molson Coors Brewing Company visit the company's website, www.molsoncoors.com or www.ourbeerprint.com.