Dutch brewer Heineken signed an agreement to purchase a majority stake in Slovenian brewery Pivovarna Laško for €25.56 per share in a deal worth about €224 million.
Heineken outbid private equity firms Kohlberg Kravis Roberts (KKR), Bain Capital, Mid Europa Partners and CVC Capital Partners that, reportedly, were prepared to offer €22 to €25 per share.
Pending clearance by the anti-trust authorities, the deal will give Heineken about 80 per cent of the Slovenian beer market and both key brands, Laško and Union, which Heineken said it wanted to preserve. It is as yet unclear whether Laško's soft drinks and water brands will also be retained.
Heineken will bring in new know-how and help the company grow on the domestic and foreign markets, Marc Koster, executive director for global business development at Heineken, told the press. While the production facilities in Ljubljana and Laško will remain operational for now, he did not rule out closures in the future.
Under Slovenian law, Heineken has to publish a takeover bid for the outstanding Laško stock offering the same price to all shareholders. The Dutch brewer also agreed a debt restructuring deal with banks through 2016.
Reactions to the sale in Slovenia have been overwhelmingly positive. The Association Small Shareholders welcomed the deal, expressing its satisfaction with the price given that it is above market price.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic
