CVC exits StarBev in €2.65bn trade sale

CVC declined to comment on the returns generated by the sale. Under its ownership, StarBev has grown into a standalone business, and CVC stated the company invested "heavily" in capital expenditure, marketing and brand development.

The private equity house acquired the Central and Eastern European operations of brewery Anheuser-Busch InBev (AB InBev) in a $2.23bn deal in 2009. A senior debt facility of approximately £1bn was provided by international and regional banks to support the deal. The deal value was composed of £1.6m in cash (debt and equity); £448m in an unsecured deferred payment obligation with a six-year maturity; and £165m in minority interests.

Molson Coors secured the deal despite a right of first offer being granted to AB InBev at the time of the CVC buyout. Asahi was also tipped by a few media outlets to be finalising a deal with CVC in the past few days – the Japanese brewer dismissed these reports as rumours and stated it was "not interested" in StarBev.

Molson Coors believes the CEE beer market to be particularly attractive, with strong historical trends and upside potential as the region returns to its pre-economic crisis growth rates.

Company
StarBev, which employs approximately 4,100 people, operates breweries in the CEE region – specifically in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro, Bosnia-Herzegovina and Slovakia. It brews approximately 13 million hectolitres per year. Its brands include local beers such as Borsodi, Kamenitza, Bergenbier, Ožujsko, Jelen and Nikšićko.

StarBev also distributes the Stella Artois, Becks, Hoegaarden, Löwenbräu and Leffe brands under license.

Headquartered in Amsterdam and Prague, StarBev posted a €700m turnover and €241m EBITDA in 2001.

People
István Szőke led the deal for CVC. Alain Beyens is chief executive of StarBev.

Advisers
Equity & Company – Nomura International (M&A); Freshfields Bruckhaus Deringer (Legal).

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