Amsterdam, 25 March 2008 - Heineken N.V. announced today that it will
acquire Drinks Union in the Czech Republic. The transaction will
strengthen Heineken's number 3 position in the market, and gives the
company a market share of 12% and a total domestic volume of more
than 1.9 million hectolitres.
The cost of the transaction, which will be funded from existing
credit facilities, has not been disclosed. The deal is expected to be
earnings enhancing in 2009 and value enhancing in 2012. The proposed
acquisition will be submitted to the relevant competition authorities
for approval and, subject to this, is expected to be completed by the
second quarter of 2008.
Drinks Union owns a total of four breweries, all located in North and
East Bohemia. Two of the breweries are located in Usti nad Labem, one
in Louny and one in Kutna Hora. The regional market positions are
complementary to Heineken's existing positions in the Moravian and
Prague regions. Drinks Union has a total production capacity of 0.9
million hectolitres and employs 523 staff. The brand portfolio
consists of the national brand Zlatopramen and the regional Breznak,
Louny and Dacicky brands. 2007 sales volumes totaled 900,000
hectolitres including export and the company currently has a domestic
market share of 4%.
Nico Nusmeier, Regional President, Central and Eastern Europe of
Heineken N.V., said: "With this transaction we have significantly
extended our reach and consolidated our position in a profitable beer
market. Our geographic presence coupled with our strong, balanced
portfolio of regional and national brands, will allow us to extract
greater value from the considerable growth opportunities in the Czech
market."
In the Czech Republic, one of Europe's reference beer markets,
Heineken currently owns the Starobrno and Krusovice Breweries, with
breweries in Brno, Znojmo (Moravia) and in Krusovice (Bohemia).
Heineken's existing brand portfolio includes Starobrno, Hostan, Zlaty
Bazant, Krusovice and Heineken.
Editorial information:
Heineken N.V. is the most international brewer in the world. The
Heineken brand is sold in almost every country in the world and the
Company owns over 115 breweries in more than 65 countries. With a
Group beer volume of 139 million hectolitres Heineken ranks fourth in
the world beer market by volume. 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 2007, revenue amounted to EUR12.6 billion and Net Profit
before exceptional items and amortisation of brands amounted to
EUR1.1 billion. Heineken employs 54,000 people. Heineken N.V. and
Heineken Holding N.V. shares are listed on the Amsterdam stock
exchange. Prices for the ordinary shares may be accessed on Bloomberg
under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000
Service under HEIN.AS and HEIO.AS. Additional information is
available on Heineken's home page:
http://www.heinekeninternational.com.
Press enquiries
Véronique Schyns
Tel: +31 (0)20 52 39 355
veronique.schyns@heineken.com
Investor and analyst enquiries
Jan van de Merbel
Tel: +31 (0)20 52 39 590
investors@heineken.com
