Heineken to Acquire Majority Stake in Consolidated Breweries, Nigeria.AMSTERDAM, Netherlands -- Heineken N.V.(AEX AEX See: Amsterdam Exchange :HEIN) announces today that it has reached an agreement in principle with a co-shareholder to increase its stake in Nigerian based Consolidated Breweries Consolidated Breweries is a Nigerian brewery. It is majority owned by Heineken. They are the third largest brewer in the country, and concentrate on the low-priced end of the market. from 24% to a controlling stake of 50.05%. The acquisition will be financed from available cash resources. As agreed by both parties the acquisition price will not be disclosed. The investment will be immediately earnings accretive and value accretive in 2008. The deal is subject to a satisfactory outcome of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and obtaining regulatory approval. Consolidated Breweries was incorporated in 1980. It has a 9.5% market share in Nigeria and is the number three brewer in the domestic beer market, employing 1050 people, with a turnover of Euro 40.5 million, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of Euro 15.4 million and EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). of Euro 13.5 million in 2003. Together with the main brand "33" Export, which is brewed under license, and the Hi-Malt brand, Consolidated Breweries covers the low price segment of the beer market and operates two breweries See for an up to date listing of all the breweries detailed on Wikipedia, sorted into regions. Africa
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Jean Francois van Boxmeer, Member of the Executive Board of Heineken N.V. commented: "We have been very pleased with the performance of Consolidated Breweries. This controlling stake further strengthens our number 1 position in Africa's second largest beer market and shows our commitment to expand in those markets that will enhance both volume and value." Currently Heineken also owns a 54.2% controlling stake in the premium-orientated Nigerian Breweries Nigerian Breweries is a Nigerian brewery, established in 1946, with six breweries throughout the country. It is partially owned by Heineken, the Dutch brewer. Alcoholic Brands
Consolidated Breweries and Nigerian Breweries will continue to operate as separate entities, focusing on different segments of the beer market. The Nigerian beer market amounted to 10.2 million hectolitres in 2003. In the coming years, Heineken expects the Nigerian beer market to grow on average by 3% per annum Per annum Yearly. . Editorial information Heineken N.V. is the most international brewer in the world. The Heineken brand is sold in more than 170 countries and the company owns over 115 breweries in more than 65 countries. With a total volume of 109 million hectolitres, Heineken ranks second in the world beer market in profitability. Heineken strives for an excellent sustainable financial performance through marketing a portfolio of strong local and international brands with the emphasis on the Heineken brand, through a carefully selected combination of broad and segment leadership positions and through a continuous focus on cost control. In 2003 net turnover amounted to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 9.3 billion and net profit to EUR 798 million. Heineken employs over 60,000 people. For further information regarding Heineken N.V.: www.heinekeninternational.com |
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