Heineken Acquires Rechitsa Brewery in Belarus
The transaction is to be financed from existing credit facilities and will be immediately earnings enhancing and value enhancing in 2010. The proposed acquisition is subject to regulatory approvals.
23/05/08 Heineken N.V. announced that it is to acquire the Rechitsa brewery, strengthening Heineken’s number two position in the fast growing Belarus market giving the company a production share of 24%.
Under the terms of the transaction, Heineken has agreed to invest US$ 9.9 million (EUR 6.4 million) in an increase in the share capital of Rechitsa, ultimately leading to a 51% share in the company. The transaction is to be financed from existing credit facilities and will be immediately earnings enhancing and value enhancing in 2010. The proposed acquisition is subject to regulatory approvals.
In 2007, Rechitsa sold 285,000 hectolitres, equating to a national production share of 8%. The brewery, has a technical capacity of 525,000 hectolitres, employs 588 staff and is located in the city of Rechitsa in South Eastern Belarus, 280 km from Minsk. The business also operates a maltery, with a capacity of 10,000 tons. The portfolio consists of the mainstream beer brand Rechitsa and its 6 sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG, which has three variants.
Nico Nusmeier, Regional President Central and Eastern Europe, Heineken N.V. commented: “Following the acquisition of Syabar in December 2007, this transaction underlines our confidence in the potential of the Belarus beer market. The combination of Syabar and Rechitsa will give us a complementary brand portfolio, a leading position in South Eastern Belarus and a strong platform on which to grow our Russian brands, the fastest growing segment in this region”.
