AmBev Announces Alliance and Investment in the Dominican Republic.Business Editors SAO Sa´o n. 1. (Zool.) Any marine annelid of the genus Hyalinæcia, especially H. tubicola of Europe, which inhabits a transparent movable tube resembling a quill in color and texture. PAULO, Brazil--(BUSINESS WIRE)--Feb. 12, 2004 Companhia de Bebidas das Americas - AmBev (NYSE NYSE See: New York Stock Exchange :ABV ABV Above ABV Alcohol By Volume ABV Abuja, Nigeria (airport code) ABV Assault Breacher Vehicle ABV Accredited Business Valuation specialist ABV Auxiliary Building Ventilation ABV Annual Buy Value ABV Air Bleed Valve ) (NYSE:ABVc) (BOVESPA See Bolsa de Valores de Sao Paulo. :AMBV4) (BOVESPA:AMBV3), the world's fifth largest brewer and Brazil's leading Beverage Company, announces today its decision to enter the Dominican Republic's beverage market, competing in both the beer and soft drinks segments. The Company announces today an agreement with Embotelladora Dominicana CXA CxA Commissioning Authority (construction contracting) CxA Compañía Por Acciones (Spanish: Shared Company) CXA CartWheels Xtreme All-stars (Richmond, VA cheerleading program) (Embodom), PepsiCo's exclusive bottler for that country. Upon the conclusion of this transaction AmBev and Embodom will be partners in a company that will commercialize both soft drinks and beer in the Dominican beverage market, in which AmBev will hold a 66% stake. Embodom currently holds a leadership position in the Dominican soft drinks market, with a market share of 56.0% as of November 2003, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. EMEVENCA data. The company sells PepsiCo's core soft drinks brands (Pepsi Cola, Seven Up and Mirinda), as well as its own brand Red Rock. Embodom has one bottling plant Noun 1. bottling plant - a plant where beverages are put into bottles with caps industrial plant, plant, works - buildings for carrying on industrial labor; "they built a large plant to manufacture automobiles" with capacity to produce 2.3 million hectoliters per year, which is located in the city of Santo Domingo. Besides the plant, the company counts on 25 distribution centers across the country, servicing the whole Dominican beverage market. The terms of the transaction are as follows:
1. AmBev will acquire a 51% stake at Embodom for US$ 60 million
due in three installments: US$40 million in February 2004,
US$10 million in February 2005 and US$10 million in February
2006.
2. The 66% stake will be achieved via asset contribution to
Embodom, composed of US$ 10 million in cash and an operational
beer production plant, built with existing assets from AmBev.
AmBev estimates the size of the Dominican beer market in terms of total volumes and value at 3.2 million hectoliters and over US$430 million, respectively. Further information about this transaction will be provided at AmBev's fourth quarter conference call. The complete press release is available at www.ambev-ir.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion