Heineken has completed its acquisition of Kirin’s struggling Brazilian business in a deal worth €665 million.
As we previously reported in February, the deal will make Heineken the second largest beer company in Brazil with an estimated 20% share.
Brazil Kirin’s brands include Baden Baden, Devassa and Kirin Ichiban and the company operates 12 production facilities in the country.
Speaking following the announcement of the acquisition earlier this year, Heineken CEO Jean-Francois van Boxmeer said: “This transaction marks a step-change in scale in an exciting beer market, building on our success to date in the premium segment and strengthening our platform for future growth.
“It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market. I look forward to welcoming our new colleagues from Brasil Kirin into Heineken and working with them to take the combined business forward.”
Heineken first entered the Brazilian market with the acquisition of Femsa Cerveza in 2010, including all of Femsa’s Mexican beer operations as well as it US and other export businesses, in a deal that valued the company at €3.8 billion.
Heineken currently operates five breweries in Brazil, along with a strategic distribution partnership with the region’s Coca-Cola bottlers, and will now inherit a further 12 production plants from Kirin Brasil along with its own distribution network. Brazil’s beer market is the third largest in the world, behind the US and China.
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