Molson Coors Closes Acquisition MillerCoors JV.
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12 October 2016 - Canadian brewer Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX) has closed its acquisition of UK brewer SABMiller plc's (LSE: SAB; JSE: SAB) 58% stake in MillerCoors LLC, the joint venture formed in the United States and Puerto Rico by both companies in 2008, the company said.
Last November, Molson Coors entered into a definitive agreement with Anheuser-Busch InBev SA/NV (Euronext: ABI) (NYSE: BUD) to purchase SABMiller plc's (LSE: SAB) (JSE: SAB) 58% stake in MillerCoors the joint venture formed in the United States by SABMiller and Molson Coors in 2008, the company said.
As part of the transaction, Molson Coors also gains full ownership of the Miller brand portfolio outside of the US and Puerto Rico, and retains the rights to all of the brands currently in the MillerCoors portfolio for the US and Puerto Rico, including Redd's and import brands such as Peroni, Grolsch and Pilsner Urquell.
Molson Coors is now the third largest global brewer by enterprise value and the sole owner of MillerCoors, which will continue to operate as separate business unit of Molson Coors and will retain its name and headquarters in Chicago.
Molson Coors had owned 42% of MillerCoors.
Under the agreement, Molson Coors will also acquire full ownership of the Miller brand portfolio outside of the US 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 USD 12bn, and was conditioned upon the closing of AB InBev's acquisition of SABMiller.
It will be financed through a combination of cash on hand and proceeds from issuances of new debt and equity.
Kandy Anand, the current president and CEO of Molson Coors International, will be appointed to the newly created role of chief growth officer for Molson Coors, responsible for leading the company's global commercial excellence strategy, including global brand development and corporate strategy.
Michelle Nettles, the current chief people officer for MillerCoors, will be appointed to the newly created role of chief people and diversity officer for Molson Coors, responsible for building a strong, diverse and efficient global team that supports the company's business objectives.
Stewart Glendinning, the current president and CEO of Molson Coors Canada, will be appointed as the new president and CEO of Molson Coors International and will be responsible for accelerating the growth of the company's expanded international business with the addition of the Miller brands globally.
Frederic Landtmeters, the current managing director of Molson Coors UK and Ireland, will be appointed as the new president and CEO of Molson Coors Canada and will be responsible for continuing the transformation of that business in order to reignite growth.
In addition to the new leadership appointments, the company announced that, effective January 1, 2017, Molson Coors International's export and license business in Europe will be transferred to Molson Coors Europe and that MillerCoors' business in Puerto Rico will be transferred to Molson Coors International.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 12, 2016|
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