|
Published May 5, 2009 at 12:38 PM
|
 Swine flu may have put a damper on Mexico's Cinco de Mayo festivities, but at Dealscape we're still celebrating by taking a look at dealmaking in the industry that many Americans associate closely with the holiday, the liquor business.
Here's a roundup of the most recent deals from The Deal Pipeline to reminisce with colleagues as you sip margaritas tonight:
- Philadelphia liquor maker Prohibition Beverage Inc. announced April 24 that it acquired p.i.n.k Spirits Co., best known for its caffeine-infused vodka products. (See details from The Deal Pipeline.)
- Pernod Ricard SA, the maker of Absolut vodka and Chivas Regal whiskey, sold its Wild Turkey bourbon for $575 million to Italy's Davide Campari-Milano SpA on April 8. (See related story from The Deal Pipeline.)
- Constellation Brands Inc. sold its business that produces "value" spirits to Sazerac Co. of New Orleans for $334 million on Jan. 12. Most of the brands that the Fairport, N.Y., company is divesting come from the lower shelves, such as Barton Vodka, Skol Vodka, Mr. Boston, Fleischmann's, Chi-Chi's cocktail mixes and Montezuma Tequila. (See related story from The Deal Pipeline.)
- Lastly, Barcardi Ltd., known for the brand of rums that bear its name, announced last summer it acquired a minority stake in the Patron tequila brand from Patron Spirits Co. (See details from The Deal Pipeline.) And, really, what's a margarita without Patron?
If liquor is not in your portfolio, so to speak, perhaps beer is. And aside from margaritas, beer is equally associated with Cinco de Mayo, especially Corona, which happened to be involved in dealmaking recently. In February, InBev SA gained a 50% stake in Corona brewer Grupo Modelo SAB de CV, when it completed the $52.2 billion takeover of Anheuser-Busch Cos. (See related story from The Deal magazine.)
What's more, InBev's purchase of Anheuser-Busch prompted several others beer deals worth mentioning this year. Here's a roundup.
- Anheuser-Busch InBev put Oriental Brewery, the No. 2 South Korean brewer, up for sale. OB is expected to fetch about $2 billion. Private equity firm Kohlberg Kravis Roberts & Co. reportedly is the preferred bidder, offering about $1.9 billion.
- Anheuser-Busch InBev is reportedly also considering a sale of its Rolling Rock brand. Potential suitors include New York private equity firm KPS Capital Partners LP's portfolio company North American Breweries Inc., a platform that earlier this year bought Labatt USA from InBev, and High Falls Brewing Co. LLC. (See related story from The Deal Pipeline.)
- Japan's Kirin Holdings Co. Ltd. agreed to a takeover valuing Australia's Lion Nathan Ltd. at A$8.2 billion ($5.9 billion). Lion Nathan, which makes Tooheys and XXXX Gold beers, is Australia's No. 2 brewer behind Foster's Group Ltd. Also in February it paid 58.9 billion Philippine pesos ($1.2 billion) for 43% of San Miguel Corp.'s Philippine brewing unit. (See related story from The Deal Pipeline.)
- SABMiller plc (LSE:SAB) acquired three brewers in China in February through its longstanding joint venture with China Resources Enterprise Ltd. China Resources Snow Breweries Ltd., maker of the popular Snow brand beer, is snapping up brewers in Anhui, Liaoning and Zhejiang provinces. CR Snow will make the purchases through three newly formed subsidiaries in which it will own between 80% and 100% equity.
For more on beer consolidation, check out Deal Video's interview with Argus' Erin Ashley Smith below. Have a great Cinco de Mayo and drink responsibly. - Maria Woehr
|
