SAB Miller buys acquires Grolsch for $1.2 billion

Source: Exec Digital USA

Date :19/11/2007 07:18:05

SABMiller, the world's third-largest brewer, has agreed to buy all of Dutch rival Grolsch for $1.2 billion in a move to further build SABMiller's existing international brand portfolio.

London-based SABMiller, which makes Miller Lite, Castle and Peroni beers, said on Monday it was offering $70.67 a share, 84 percent above Grolsch's average closing share price over the past month.

When made, the offer will be subject to customary conditions, including an acceptance threshold of at least 75 percent of the outstanding shares of Grolsch.

International branding

SABMiller said it planned to expand the Grolsch brand portfolio across Africa and Latin America, where the premium segment is still in its infancy and in the more developed markets of Central and Eastern Europe.

"We look forward to continuing to build our position as a premium brand within the new family," said Grolsch chief executive Ab Pasman.

Following the request of the Supervisory and Management Boards of Grolsch an employee fund worth $11.8 million will be established to mark the planned acquisition.

November 19, 2007