Asahi to Acquire Independent Liquor for $1.2B

Flavoured Beverages has maintained a strong market position over the years ranking first in New Zealand and third in Australia in terms of sales volume in the ARTD market.

Aug 18 2011 --- Asahi Group Holdings, Ltd. has reached an agreement to acquire all outstanding shares of Flavoured Beverages Group Holdings Limited, trading as Independent Liquor Group through Asahi’s existing subsidiary in Australia. Independent Liquor is the leading ARTD (Alcoholic Ready-to-Drink) company in New Zealand and #3 ranked in Australia.

The purchase price is NZD 1,525 million (approximately JPY 97.6 billion). The purchase price will be subject to price adjustments, based on the level of working capital, cash on hand and interest-bearing debt at the time of completion. The acquisition is conditional upon the consent from relevant New Zealand and Australian foreign investment review bodies.

Under Asahi’s long-term vision, Asahi aims to increase its sales to 2.0-2.5 trillion Yen, increase its share of overseas sales to 20-30% of total group sales and join the ranks of the top global food companies in scale, while becoming a trusted company with global quality by 2015. To achieve this goal, Asahi will drive growth in its existing businesses as well as expanding its overseas investment activities to realize further synergies.

Asahi has existing soft drink operations in Australia through Schweppes Australia, acquired in 2009. It is in the process of acquiring the water and juice business of P&N Beverages Australia Pty Ltd as well as New Zealand soft drink maker Charlie’s Group Limited through a tender offer, as announced in press releases on 4 July.

Through the acquisition of Flavoured Beverages, Asahi will gain a strong position in the alcoholic beverage markets in New Zealand and Australia. By promoting collaboration with existing beverage business groups in the region, Asahi aims to enhance its overall corporate value in Oceania.

Flavoured Beverages has maintained a strong market position over the years ranking first in New Zealand and third in Australia in terms of sales volume in the ARTD market. Operating subsidiaries include Independent Liquor (NZ) Limited, Independent Distillers (Aust) Pty Limited and other subsidiaries.