CVC in court over $800m beer tab

The filings state the sale triggered the earn-out, as agreed at the time of StarBev's sale to CVC in 2009 and as recorded in unquote" data. At that time it was recorded that AB InBev could reap $800m depending on CVC's ultimate returns. Indeed, unquote" data also recorded that AB InBev had a right of first offer when CVC came to sell the business.

CVC sold StarBev to NYSE-listed Molson Coors Brewing Company for €2.65bn in April 2012, around $1.2bn more than it had been purchased it for two and a half years earlier. During the hold period, CVC claims to have grown StarBev into a standalone business and that it invested "heavily" in capex, marketing and brand development.

The 2009 deal valued AB InBev's CEE division at $2.23bn. That deal was comprised of $1.6bn in cash (debt and equity); $448m in an unsecured deferred payment obligation with a six-year maturity, which can be automatically extended by up to two years in the event of restructuring of the senior debt financing, bearing interest at 8-15%; and $165m in minority interests.

The 2009 acquisition included AB InBev's operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia. A licensing agreement with AB InBev enabled CVC to brew and distribute brands such as Stella Artois, Beck's, Löwenbräu, Hoegaarden, Spaten and Leffe in these countries.

The court filings revealed that CVC has denied its returns triggered the earn-out and that AB InBev has since filed a counterclaim.

Headquartered in Amsterdam and Prague, StarBev posted a €700m turnover and €241m EBITDA in 2011. It employed 4,100 people at the time of the sale to Molson Coors.

The deal is CVC's only one in CEE since the early 1990s when the GP invested in two Hungarian companies – FEG (gas heaters) and Azurinvest (cosmetics, retail and property).

Ex-Advent International deal-doer Istvan Szoke leads CVC's CEE team from London.

CVC declined to comment on the matter.

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• GPs
• CEE
• CVC Capital Partners